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Chapter 2. Mugan-Akman 2007. 2-52. CASH BASIS OF ACCOUNTING. ACCRUAL BASIS OF ACCOUNTING. VS. Accounting Methods for Measuring Performance. Chapter 2. Mugan-Akman 2007. 3-52. Accounting Methods for Measuring Performance. (a) Cash basis of accountingRevenues are recognized when cash is received and expenses are recognized when cash is paid(b) Accrual basis of accountingRevenues and expenses are recognized on an economic basis regardless of when cash is paid or received.

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