The Cash Basis of Accounting Is

question 43

Multiple Choice

The cash basis of accounting is:

• A)permitted under both IFRS and ASPE.
• B)permitted under IFRS but not ASPE.
• C)not permitted under IFRS but permitted under ASPE.
• D)not permitted under either IFRS and ASPE.

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Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Consolidation Method

An accounting technique used by firms to combine the financial statements of subsidiaries with those of the parent company to present as one entity.

Equity Securities

Financial instruments like stocks that represent ownership interest in a company or rights to acquire such an interest.

Insignificant Influence

A situation where an investor does not have enough impact on a business to affect its decisions or policies.