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:

Establish Expectations

The act of setting clear standards or criteria for performance or behavior.

Visuals

Images, diagrams, or other graphics used to convey information or illustrate concepts.

Printed Documents

Physical copies of texts, images, or both, produced on paper or similar materials through printing processes.

Interfere

To obstruct or prevent a process or activity from proceeding smoothly.