Unformatted text preview: You could have done a lot of business in year one but if you don't receive the cash until year two it may look like year one was not successful as it really was. Cash basis is good for someone who doesn't carry a lot in receivables, like when payment is made at the time of the sale, or for a business that is very seasonal and for people who don't need much out of their financial statements other than to have them for tax purposes....
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This note was uploaded on 05/07/2010 for the course ACCOUNTING ACC225 taught by Professor Professor during the Spring '10 term at University of Phoenix.
- Spring '10