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What is the accrual method of accounting

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Reference no: EM132576058

Question 1: The accrual method of accounting;

Multiple Choice

Option 1: Recognizes revenue only when cash has been paid

Option 2: Recognizes revenues and expenses independent of cash inflows and outflows

Option 3: Recognizes cash revenues against the expenses paid in the previous period

Option 4: Does not involve judgment by management on the timing

Reference no: EM132576058

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