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Please read: Cash Method: Cash Method is widely known as Cash Accounting or Cash Basis Accounting....

Please read:

Cash Method:

Cash Method is widely known as Cash Accounting or Cash Basis Accounting. Under this method, when payment is received, this transaction must be recorded immediately. Additionally, when expenses are paid, this transaction must be recorded immediately as well. This method is popular to be used in small businesses because it allows the business to make projections of how much income is currently available.

What additional information can you add to the cash method?

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