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Show how each transaction would be handled (in terms of recognizing revenues and expenses) using the cash basis and the accrual basis.
- Show how each transaction would be handled (in terms of recognizing revenues and expenses) using the cash basis and the accrual basis.
- Compute October income (loss) before tax under each accounting method.
- Indicate which measure of net income or net loss is preferable. Use the transactions on October 11 and October 24 to explain.
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