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Graph both functions using the same set of axes.
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Cash Basis
An accounting method where revenue and expenses are recognized only when cash is received or paid.
Revenues
The total amount of money received by a company from its business activities, such as sales of products or services, before any deductions.
Revenue Recognition Principle
An accounting principle that determines the specific conditions under which revenue is recognized and recorded.
Unearned Revenues
Money received by a company for a service or product that has yet to be delivered or provided.
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