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The statement This business produced net income of $520,000 is unclear because it failed to specify: The accounting method, that is, accrual or cash basis.
The statement "This business produced net income of $520,000" is unclear because it failed to specify:
The accounting method, that is, accrual or cash basis. Whether the amount earned is before or after expenses. The time period. The amount of cash withdrawn from the business by the owner. Which is correct
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