Which Transaction Would Be Recorded in a Cash Basis System

question 56

Multiple Choice

Which transaction would be recorded in a cash basis system of accounting?

• A) Purchase of equipment by signing a note
• B) Purchase of supplies on credit
• C) Sale of goods against a note
• D) Sale of goods for cash

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Definitions:

Prairie

A type of ecosystem characterized by vast open landscapes, grasslands, and few trees, often found in North America.

Biomes

Large naturally occurring communities of flora and fauna occupying a major habitat, such as forests or deserts.

Climate

The long-term patterns and averages of temperature, humidity, wind, etc., in a particular region, influencing its ecosystem and weather.

Latitude And Altitude

Geographical parameters where latitude refers to a location's distance north or south of the equator, and altitude refers to the height of a point relative to sea level.