For Each of the Following Statements,indicate Whether It Applies To

question 123

Essay

For each of the following statements,indicate whether it applies to:
the cash basis of accounting (cash basis)
the accrual basis of accounting (accrual basis)
both the cash and accrual basis of accounting (both)
neither the cash nor the accrual basis of accounting (neither).
Your response should be cash basis,accrual basis,both,or neither.
$$\begin{array} { | l | l | } \hline \text { Statement } & \text { Applies to } \\\hline \text { Does a good job of tracking a } & \\\text { business's cash flows } & \\\hline \text { It is irrelevant when cash is received } & \\\text { or paid } & \\\hline \text { May require a company to prorate a } & \\\text { prepayment of rent } & \\\hline\end{array}$$

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Definitions:

Charles II

The king of England, Scotland, and Ireland who reigned during the Restoration period (1660-1685) after the English Civil War, known for his policies of religious tolerance.

New Netherlands

A 17th-century colonial province of the Dutch Republic that encompassed parts of what is now the northeastern United States.

Navigation Acts

A series of English and later British laws that regulated trade between England and its colonies to control colonial commerce and ensure it benefitted England.

Colonial Trade

Trade between colonial powers and their colonies, often involving the exchange of raw materials for finished goods, and playing a central role in the economic systems of empires.