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Which of the following does not correctly describe the cash basis of accounting? Multiple Choice It is not accepted for external reporting purposes. Revenues are
Which of the following does not correctly describe the cash basis of accounting?
Multiple Choice
It is not accepted for external reporting purposes.
Revenues are recognized when cash is collected from customers.
Expenses are recognized when they are paid for.
Recognize revenues when earned and expenses when incurred.
Correct ANSWER is Recognize revenues when earned and expenses when incurred.
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