Cash-Basis Accounting Is Allowed Under

question 178

Multiple Choice

Cash-basis accounting is allowed under

• A) GAAP but not IFRS.
• B) IFRS but not GAAP.
• C) both IFRS and GAAP.
• D) neither IFRS nor GAAP.

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Definitions:

Replenishment

The process of replenishing inventory or stock to ensure that the optimal inventory level is maintained.

Auxiliary Petty Cash Record

A detailed ledger used to track the small cash expenditures handled through a petty cash fund.

Office Expense

Costs associated with the day-to-day operations of an office, including supplies, utilities, and administrative salaries.

Insurance Expense

The cost associated with purchasing insurance policies for the business, considered an operating expense.