A small company may be able to justify using a cash basis of accounting if they have
A) sales under $1000000.
B) no accountants on staff.
C) few receivables and payables.
D) all sales and purchases on account.

Question

Quizplus · Accepted Answer

A small company might justify using a cash basis of accounting if it has few receivables and payables. This method records transactions when cash changes hands, making it simpler for businesses with minimal credit transactions.

A Small Company May Be Able to Justify Using a Cash