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Which statement below is incorrect regarding cash basis revenue recognition? Under cash basis accounting, we...

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Accounting

Which statement below is incorrect regarding cash basis revenue recognition?
Under cash basis accounting, we recognize revenue only when we earn revenues.
A company recognizes revenue only when it receives the associated cash with the transaction.
Cash basis accounting considers only cash received as a result of the earnings process to be revenue.
When a business borrows money, the cash it receives is a liability, not a revenue.
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