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1.

Under Accrual Basis of AccountingA. both Cash and Credit transactions are recorded .B. only credit transactions are recorded.C. None of the above.D.

Answer» Correct Answer - A
Discussion
2.

Accrual Basis of AccountingA. does not give a true and fair view of profit and financial position.B. gives a true and fair view of profit and financial position.C. may of may not give a true and fair view of profit and financial position.D. None of the above.

Answer» Correct Answer - B
Discussion
3.

Accrual Basis of Accounting recognisesA. Outstanding and Prepaid Expenses.B. Accrued Incomes and Incomes Received in Advance.C. Both (a) and (b).D. None of the above.

Answer» Correct Answer - C
Discussion
4.

Discuss Cash and Accrual Basis of Accounting.

Answer» cash basis - The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made.
Accrual Basis -Under the accrual basis of accounting (or accrual method of accounting), revenues are reported on the income statement when they are earned. When the revenues are earned but cash is not received, the asset accounts receivable will be recorded.
Discussion
5.

Under the Cash Basis of Accounting, expenses are recordedA. on payment.B. on being incurred.C. either (a) or (b) .D. None of these.

Answer» Correct Answer - A
Discussion