An accountant who records a transaction only when cash is received or disbursed is using which basis of accounting?

Question

Quizplus · Accepted Answer

The accountant is using the cash basis of accounting, which records transactions when cash is received or disbursed. This method does not consider accounts receivable or accounts payable, and therefore does not reflect the true financial position of a business. As a result, this basis of accounting is not considered the best choice for businesses seeking accurate financial information.

An Accountant Who Records a Transaction Only When Cash Is