question archive 1)How does Accrual Basis of Accounting differ from cash basis: A) Cash basis pays the least amount of taxes when you receive all the payments in cash because they are not reported as income

1)How does Accrual Basis of Accounting differ from cash basis: A) Cash basis pays the least amount of taxes when you receive all the payments in cash because they are not reported as income

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1)How does Accrual Basis of Accounting differ from cash basis:
A) Cash basis pays the least amount of taxes when you receive all the payments in cash because they are not reported as income.
B)Accrual basis helps you recognize Income when is earned, using an Invoice and Accounts Receivable, regardless of when it is paid. Cash basis recognizes the income only when the invoice is paid.
C) Accrual is only for large companies that accrue liabilities, all small businesses are forced be using cash basis by the IRS.
D) They do not differ from the IRS's perspective.

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