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#9 of 20 Which of the following statements regarding the cash basis of accounting is true? O a. Expenses are reported in the
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In cash basis of accounting generally revenues are reported in the period in which cash is received and expenses are reported when cash is paid out. Cash basis of accounting is in contrast to accrual basis of accounting because in accrual system of accounting revenues and expenses are reported irrespective of whether cash had been received or not.

Answer : C

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