Which of the following types of transactions may not be accounted for using the cash method for small proprietorships?
A)Sales of inventory
B)Services
C)Sales of securities by an investor
D)Payments of debt
E)All of the choices can be accounted for using the cash method.

Question

Quizplus · Accepted Answer

All of the choices listed can indeed be accounted for using the cash method in small proprietorships. The cash method of accounting records transactions when cash changes hands, which applies to sales of inventory, services, sales of securities by an investor, and payments of debt.

Which of the Following Types of Transactions May Not Be