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3 years ago

Which of the following is the advantage of cash-based accounting?

Business

2 answers:

Katena32 [7]3 years ago

5 0

Answer:

The correct answer to the following question will be Option A (it is more accurate than accrual accounting).

Explanation:

Cash-based accounting

Cash accounting is a form of accounting where expenditure payments are reported during the time they are received, and expenditures are documented in the period they are paid in. In certain words, when cash is obtained and charged, the profits and expenditures are reported, respectively.
There are definite advantages for relying on the cash accounting basis for tax purposes. This accounting guarantees that taxes on money not yet collected are not paid; this increases profitability and ensures that funding is available through tax expenditures.

Therefore, Option A defines the Cash-base accounting benefit.

Alexxandr [17]3 years ago

4 0

A) it is more accurate than accrual accounting.

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3 years ago

Read 2 more answers

Consumer protection and services provided by government include all but ____.

Dominik [7]

Its letter b. guarantees of customer satisfaction

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3 years ago

7. The fact that Megan Grassell exceeded her funding goals is a good indication that her product will be popular.

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Answer: True

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2 years ago

Grouper Corp. retires its $640000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying v

AleksAgata [21]

Answer:

Explanation:

The journal entry is shown below:

Bonds payable A/c Dr $640,000

Premium on bonds payable A/c Dr $23,970

Loss on bonds redemption A/c $8,030

To Cash A/c $672,000 ($640,000 × 1.05)

(Being the redemption of bond is recorded and the remaining balance is debited to the Loss on bonds redemption account)

The Premium on bonds payable is computed below:

= Carrying value of the bonds - face value of the bond

= $663,970 - $640,000

= $23,970

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2 years ago

Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the s

k0ka [10]

Answer: B. Was formed

Explanation:

Limited liability companies that are doing business in the states other than the states that they registered originally may have to seek the status of foreign LLC in such states.

Therefore, since Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm was formed. Therefore, the correct option is B.

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2 years ago