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The primary purpose of a smokestack is to:
Cash-Basis Accounting
Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash.
Revenue Recognition Principle
An accounting principle stating that revenue should be recorded when it is earned and realizable, regardless of when the cash is received.
Expense Recognition Principle
An accounting principle that states expenses should be recognized and recorded when they are incurred, regardless of the timing of cash payments.
Financial Statements
Papers that give a summary of a corporation's financial status, featuring the balance sheet, income statement, and statement of cash flows.
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