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| 1. |
What is Accrual basis of accounting? |
| Answer» Solution :Under this basis, incomes are recorded when they are earned or accrued, IRRESPECTIVE of the fact whether cash is RECEIVED or not, e.g., sales made on credit will be included in THETOTAL sales of the period. Similarly, expenses are recorded when they are incurred or become due and not when the cash is PAID for them. | |