Which of the Following Is an Advantage of Using a Cash-Based

question 1

Multiple Choice

Which of the following is an advantage of using a cash-based accounting system?

• A) It accurately specifies a company's current cash position.
• B) It is in compliance with GAAP standards.
• C) It needs greater bookkeeping requirements.
• D) It is a more sophisticated approach to accounting.
• E) It provides a more accurate indication of the profitability of a business.

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Definitions:

Cylindricity

A three-dimensional geometric tolerance that specifies how much a cylindrical feature's actual profile can deviate from a perfect cylinder.

Circularity

Circularity is a geometric tolerance that specifies how much a feature's shape can deviate from a perfect circle.

Parallelism

A geometric condition where surfaces or lines are equidistant at every point, typically referenced in engineering to describe alignment accuracy.

Concentricity

The characteristic of two or more forms sharing a common center, axis, or curve, often critical for mechanical parts that rotate.