The Method of Accounting That Recognizes a Transaction When Cash

question 30

Multiple Choice

The method of accounting that recognizes a transaction when cash is received or paid is:

• A)financial accounting.
• B)cash accounting.
• C)cost accounting.
• D)accrual accounting.

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Definitions:

Net Advantage to Leasing

The total financial benefit that a company receives from leasing assets rather than purchasing them, taking into account all costs and savings.

CCA Class

Denotes the category of depreciable property a business asset falls into in Canada, determining the rate of depreciation for tax purposes.

Net Advantage to Leasing

The total financial benefit of leasing an asset, comparing the costs of leasing versus buying.