An Auditor Is Reporting on Cash Basis Financial Statements

question 30

Multiple Choice

An auditor is reporting on cash basis financial statements.These statements are best referred to in his or her report by which one of the following descriptions?

• A) Financial position and results of operations arising from cash transactions.
• B) Assets and liabilities arising from cash transactions and revenue collected and expenses paid.
• C) Balance sheet and income statement resulting from cash transactions.
• D) Cash balance sheet and the source and application of funds.

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Definitions:

Organisational Growth

The process by which an organization increases in size, resources, capabilities, or market share over time.

Core Competencies

Fundamental strengths and abilities of a company that give it a competitive advantage.

Organisational Strength

The capabilities and resources that give an organization a competitive edge or superior performance ability.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.