why cash bases of accounting is not valid under companies act -2013
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Explanation:
If your expenses are made on credit, you can't use cash-basis accounting. With cash-basis accounting, you do not record expenses that you will pay in the future but have not yet paid. The IRS restricts some businesses from using the cash-basis method. ... Businesses with inventory must use the accrual method.
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Explanation:
With cash-basis accounting, you do not record money due in the future. The same concept applies to making purchases on credit. If your expenses are made on credit, you can't use cash-basis accounting. With cash-basis accounting, you do not record expenses that you will pay in the future but have not yet paid.
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