The Cash Basis of Accounting Is an Accounting System in Which

question 151

True/False

The cash basis of accounting is an accounting system in which revenues are recorded when cash is received and expenses are recorded when cash is paid.

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Definitions:

Sole Proprietorship

A business structure where a single individual both owns and runs the company, bearing unlimited personal liability for its debts.

Unlimited Liability

A business structure where the owners are personally responsible for all of the company's debts and liabilities.

Business License

A legal authorization to operate a business in a particular municipality, region, or country, often requiring renewal and compliance with specific regulations.

Primary Market Transactions

The issuance and sale of securities directly from the issuer to investors, as opposed to trading between investors in the secondary market.