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Distinguish between Cash Basis and Accrual Basis of Accounting. (two points) |
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Answer» Solution :(i) Both cash and credit transactions are recorded under the Accrual System of Accounting. Under the Cash System of Accounting only cash transactions are recorded. (II) Capital and revenue ITEMS are DISTINGUISHED under the Accrual System of Accounting. Under the Cash System of Accounting no such DISTINCTION is MADE. |
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