System in which entry is recorded for cash as well as credit transactions is known as _____________.

Cash system

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Credit system

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Accrual System

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Non-accrual system

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Solution

The correct option is C Accrual System
Accrual system is an accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. For example -In a credit sale, the sale is entered into the books when the invoice is generated rather than when cash is collected.

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