There is no provision for depreciation in cash basis accounting because there is no actual cash involved
Question
Solution 1
In cash basis accounting, transactions are recorded based on cash flow rather than when they are incurred. This means that income is recognized when cash is received, and expenses are recognized when cash is paid.
Depreciation is an accounting method used to allocate the cost of a tangible asset o Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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