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:

Earthworms

Segmented invertebrates belonging to the phylum Annelida, crucial for soil aeration and nutrient recycling.

Cross-Fertilizing

The process of fertilization in which the sperm and egg come from two different individuals, increasing genetic diversity within a species.

Parallel Parking

A method of parking a vehicle parallel to the road, in line with other parked vehicles.

Closed Circulatory System

A type of circulatory system where blood is confined to vessels and is kept separate from the interstitial fluid.