Under GAAP accounting, a company has the choice of using cash or accrual accounting in preparing its financial statements.

Name: Under GAAP accounting, a company has the choice of using cash or accrual accounting in preparing its financial statements.
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Question

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Under GAAP (Generally Accepted Accounting Principles), companies are required to use the accrual basis of accounting for preparing their financial statements, not the cash basis.

Under GAAP Accounting, a Company Has the Choice of Using