The cash basis of accounting is used by some small businesses and by most individuals for tax purposes.

Question

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The cash basis of accounting is a method of recording transactions when money is actually received or paid out, rather than when it is earned or incurred. It is commonly used by small businesses and individuals for tax purposes because it is simpler and more straightforward than the accrual basis of accounting used by larger businesses.

The Cash Basis of Accounting Is Used by Some Small