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Unformatted text preview: companies use the accrual-basis method of accounting. Accrual-basis accounting provides an accurate account of how an organization is performing over the long-term. The cash method of accounting does not measure profit as well as the accrual method. What are debits and credits? Debits (Dr) is money that is flowing out of a company and are used in double entry system. Credits (Cr) represents money that is being made through sales or other means and is used in double entry system. Dr and Cr are used to check cash flow and balance budgets....
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This note was uploaded on 06/19/2011 for the course FIN 402 taught by Professor Sandymcdonald during the Spring '11 term at University of Phoenix.
- Spring '11