Which of the Following Is a Disadvantage of Using a Cash-Based

question 69

Multiple Choice

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

• A) It may be misleading with respect to understanding a company's actual cash position.
• B) It can distort measure of the profitability of a business.
• C) It needs greater bookkeeping requirements.
• D) It is a more sophisticated approach to accounting.
• E) It provides an accurate indication of the profitability of a business.

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