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Q. Cash collection as point of revenue recognition?

Several small companies record revenues and expenses at the time of cash collection and payment which may not take place at the time of sale. This process is the cash basis of accounting. The cash basis is acceptable principally in service enterprises that don't have substantial credit transactions or inventories such as business entities of doctors or dentists.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9568113

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