Which of the Following Statements Is True About the Cash

question 31

Multiple Choice

Which of the following statements is true about the cash basis of accounting?

• A)It can distort reported profits.
• B)It is the only acceptable method for external reporting.
• C)It reports revenues when earned and expenses when incurred.
• D)It is used when cash is paid at the same time as the cost is incurred,but is not used when cash is paid before the expense is incurred.

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Definitions:

Psychoanalytic

Psychoanalytic theory is a set of psychological and therapeutic theories and techniques, which, originating from the work of Sigmund Freud, emphasizes unconscious motivations and conflicts as determinants of human behavior.

Unconscious Mind

The segment of the mind operating below the level of conscious awareness, influencing thoughts, feelings, and actions without one's explicit understanding.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from cultural norms.

Person-Environment Interaction

The dynamic relationship between an individual and their surroundings, influencing and being influenced by each other.