A Small Company May Be Able to Justify Using a Cash

question 201

Multiple Choice

A small company may be able to justify using a cash basis of accounting if they have

• A) sales under $1000000.
• B) no accountants on staff.
• C) few receivables and payables.
• D) all sales and purchases on account.

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Definitions:

Acculturation and Enculturation

The processes through which individuals learn and adopt the cultural habits of another group (acculturation) and the cultural habits of their native group (enculturation), respectively.

Helper Bias

The tendency for individuals providing support or assistance to others to have preconceived notions or biases that can affect their judgment or behavior.

Process-oriented Goals

Objectives that focus on the steps, experiences, or methods required to achieve a specific outcome, emphasizing the journey rather than the end result.

Continuity

The consistent operation or development of something over a period of time without interruption.