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Define "group." Identify and define the basic types of groups in organizations, and explain why understanding each is important for managers.
Cash Receipt
The collection of money (paper money, coins, checks) received by a business for the sale of goods or services or any other financial transaction.
Accrual Basis
An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.
Recorded When Earned
A principle indicating that revenue should be recognized in the accounting period in which it is earned, regardless of when the cash is received.
Accrued Revenues
Revenues that have been earned by providing goods or services but have not yet been received or recorded.
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