Which of the following statements correctly defines the cash receipts and disbursements method of accounting?
a. Earnings is reported together it is earned and also expenses space reported together they are incurred.
You are watching: Which of the following statements correctly describes the reporting of cash?
b. The cash receipts an approach is the most challenging accounting an approach to understand.
c. A taxpayer who provides the cash technique for reporting most items may use a different an approach for reporting self-employment income.
d. Report of income and expenses is subject to the all events test.
Revenue is known when revenue is earned and also the amount related to the revenue is probable to inflow to the company. Cost is well-known in the period in which it would carry revenue come the company.
Answer and also Explanation:1
The exactly answer is option (c).
A taxpayer who uses the cash an approach for reporting most items might use a different method for reporting...
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