Every company must use the cash basis of accounting.

Name: Every company must use the cash basis of accounting.
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Question

Quizplus · Accepted Answer

While cash basis accounting is a common accounting method, it is not mandatory for every company to use it. Companies may choose to use accrual accounting, which records revenue and expenses when they are earned or incurred, regardless of when payment is received or made. However, certain industries and business structures may have specific requirements for their accounting methods.

Every Company Must Use the Cash Basis of Accounting