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Cox Co Uses the Cash Basis of Accounting

Question 64

Multiple Choice

Cox Co. uses the cash basis of accounting. Cox Co. receives cash from customers in September for services to be performed in November. Which of the following is true?


A) Cox Co. should record revenue in September and receipt of cash in November.
B) Cox Co. should record revenue in November and receipt of cash in September.
C) Cox Co. should record both the receipt of cash and revenue in November.
D) Cox Co. should record both the receipt of cash and revenue in September.

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