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Which of the following statements regarding the accrual basis of accounting is true? A ) It records transactions only when cash is received or paid.

Which of the following statements regarding the accrual basis of accounting is true?
A) It records transactions only when cash is received or paid.
B) It records revenue when it is earned and expenses when they are incurred, regardless of when cash is exchanged.
C) It is primarily used by small businesses and individuals for tax purposes.
D) It provides a more accurate representation of a company's financial position compared to the cash basis of accounting.

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