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Question
Why does GAAP require the accrual basis?
Why does GAAP require the accrual basis?
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Solution
GAAP requires the accrual basis of accounting as it records sales at the time of their occurrence and therefore provides clear insight into the actual sales trends and company performance.
GAAP requires the accrual basis of accounting as it records sales at the time of their occurrence and therefore provides clear insight into the actual sales trends and company performance.
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