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The primary difference between accrual-basis and cash-basis accounting is: 1. The timing of when revenues and expenses are recorded 2. Cash-basis accounting is allowed for
The primary difference between accrual-basis and cash-basis accounting is:
1. The timing of when revenues and expenses are recorded | |
2. Cash-basis accounting is allowed for financial reporting purposes but not accrual-basis accounting | |
3. Accrual-basis accounting violates both the revenue recognition and matching principles | |
4. Adjusting entries are only a necessary part of cash-basis accounting |
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