Which of the Following Types of Transactions May Not Be

question 32

Multiple Choice

Which of the following types of transactions may not be accounted for using the cash method for small proprietorships?

• A)Sales of inventory
• B)Services
• C)Sales of securities by an investor
• D)Payments of debt
• E)All of the choices can be accounted for using the cash method.

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Definitions:

Unitary

A system of government where all the powers rest in a single, central authority.

Confederal

A confederal system, also denoted, is a political structure where independent states join together for certain purposes but maintain their sovereignty, often seen in the handling of common defense or foreign policy.

Sovereign Powers

The ultimate authority or power of a state to govern itself or another state, including making and enforcing laws, without external interference.

Central Government

The primary government authority of a nation, responsible for national policy and administration.