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Essay text:
This paper will be explaining which type of accounting method those large companies and which one small businesses uses. Will explain what determines the cash method from the accrual method.
Cash Method
The cash method is an alternative method that small business can use to perform the bookkeeping for their firm. Under the cash basis the revenue is recorded when cash is received, and the expense is recorded when cash is paid. Sometimes while using the cash method leads to misleading financial statements. The cash basis is justified for small business because they have few receivable and payables...
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