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Ray Company began the accounting period with a $36,000 credit balance in its Accounts Payable account. During the accounting period, Ray incurred expenses on account of $108,000. The ending Accounts Payable balance was $48,000.
Required
Based on this information, determine the amount of cash outflow for expenses during the accounting period.
Which of the following is not an expense recognition approach recognized by the FASB as an expense recognition principle to properly match expenses against revenues?
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