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Which of the following is not applicable to the cash basis of accounting? Financial transactions are entered immediately into the accounts when they happen. Financial

  1. Which of the following is not applicable to the cash basis of accounting?
  1. Financial transactions are entered immediately into the accounts when they happen.
  2. Financial transactions are entered into the accounts only when cash is received or handed over by the business.
  3. This type of accounting is mainly used by small firms.
  4. None of the above.

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