Question: Question Mode Multiple Select Question Select all that apply Why is the accrual - based income statement superior to a cash - based income statements
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Multiple Select Question
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Why is the accrualbased income statement superior to a cashbased income statements in measuring profitability? Select all that apply.
Multiple select question.
It reports the revenues generated regardless of when the cash was collected.
It reports the cash collected in advance as revenue.
It does not include estimates in measuring profit.
It reports the expenses incurred in generating the revenues regardless of when the cash was paid.
It reflects well the operating activities of the business and the best measure of a companys profitability during the period.
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