Businesses often recognize a revenue or expense,even though the corresponding cash collection or payment did not occur in the same accounting period.

Name: Businesses often recognize a revenue or expense,even though the corresponding cash collection or payment did not occur in the same accounting period.
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This is known as the accrual accounting method, where revenues and expenses are recognized when they are earned or incurred, regardless of when cash is actually collected or paid.

Businesses Often Recognize a Revenue or Expense,even Though the Corresponding