Which of the Following Is(are)a Deficiency(deficiencies)of Cash-Basis Accounting

question 134

Multiple Choice

Which of the following is(are) a deficiency(deficiencies) of cash-basis accounting?

• A) it omits key revenues and expenses from the balance sheet
• B) it fails to match revenues and expenses to measure economic performance
• C) it omits key assets and key liabilities from the balance sheet
• D) B and C

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Definitions:

Parathyroid Hormone

A substance secreted by the parathyroid glands that controls the amount of calcium in the bloodstream.

Bone Resorption

The process by which osteoclasts break down bone tissue, releasing minerals into the blood and leading to a decrease in bone density.

Inferior Good

A good that has a negative income effect.

Goods

Physical items that satisfy human wants or needs and can be transferred or sold.