Answer:
Option(2) i.e " savings accounts at a local bank." is the correct answer to the given question .
Explanation:
Liquid asset are those asset that are rapidly translated into the cash money.The liquid asset is the connection cash in hand asset or perhaps the asset that can quickly be turned into the cash money.
- We will withdraw the money many number of times it means in the option(2) the money is turned into the cash money. this is an example of the liquid asset .
- All the other options are not turned into the cash money that's why it is not liquid asset .So these are incorrect option.
Answer:
The incorrect statement regarding relevant costs and revenues:
To be relevant, a cost or revenue must not be future-oriented and must differ between the alternatives.
Explanation:
For a cost or revenue to be considered as relevant, it must be incurred or earned at a future time. It must also differ between the options available for decision making. A cost or revenue cash flow is relevant if it arises from a management decision and can be avoided. This simply means that if the cost or revenue is not affected by management decision or does not make any difference in decisions, it is not relevant.
Answer:
Explanation:
For recording the transactions, the first step is to analyze each transaction from the source documents. After that reporting these transactions in a journal form. After that posting the entries to their respective accounts and then it would help to prepare the trial balance
The steps are shown below:
1. Analyze each transaction from source documents.
2. Record relevant transactions in a journal.
3. Post journal information to ledger accounts.
4. Prepare and analyze the trial balance.
Cash basis of accounting is the one that recognizes when cash has been paid and received unlike accrual basis.
<h3>What is cash basis of accounting?</h3>
Cash basis of accounting is the one that recognizes when revenue when received unlike accrual basis.
It is important to know that cash basis of accounting ensures the company always knows how much cash flow it has.
Learn more about cash basis of accounting here: brainly.com/question/20397933
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