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Liability Account
An accounting record that represents debts or obligations a company owes to others.
Cash Basis
An accounting method where revenues are recognized when received and expenses when paid, contrasting with accrual basis accounting.
Incurred
Costs or expenses that a company has obtained or become responsible for as a result of its operations.
Accrual-Basis Accounting
An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.
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