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:

Segregation of Duties

A risk management practice that divides responsibilities among different individuals or teams to reduce the risk of error or fraud.

Collusion

A secret agreement or cooperation between two or more parties, often for a fraudulent or deceitful purpose, especially to cheat or deceive others.

NSF Cheques

Cheques that have been returned by a bank because the issuer's account does not have enough funds to cover the cheque.

Depositor's Account

An account maintained by a bank for an individual or a company, where the account holder can deposit and withdraw money.