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What type of accounting system records revenue only when the money is actually received?

▸ Depreciation

▸ Deferral basis

▸ Accrual basis

▸ Profit basis

▸ Cash basis
Textbook 

Business in Action


Edition: 9th
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aedukuyeaedukuye
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Cash basis

If a business runs on a cash basis, it records revenue only when money from the sale is actually received. Cash-based accounting is simple, but it can be misleading. It's easy to inflate the appearance of income, for example, by delaying the payment of bills. For that reason, public companies are required to keep their books on an accrual basis.

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