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Which of the Following Statements in Relation to Converting Accrual

Question 27

Multiple Choice

Which of the following statements in relation to converting accrual information to the cash basis is correct?


A) An increase in current assets means less cash.
B) A decrease in current assets means less cash.
C) An increase in current liabilities means less expense.
D) A decrease in current liabilities means more cash.

Correct Answer:

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