Natalya reports profits when cash is received and expenses when they are paid.She is using
A)a cash flow statement.
B)accural-basis accounting.
C)cash-basis accounting.
D)liquid assets.

Question

Quizplus · Accepted Answer

Natalya is using cash-basis accounting, which records transactions when cash is received or paid out. This is different from accrual-basis accounting, which records transactions when they occur, regardless of when cash is exchanged. A cash flow statement is a financial statement that shows the inflows and outflows of cash for a specific period. Liquid assets refer to assets that can be easily converted into cash.

Natalya Reports Profits When Cash Is Received and Expenses When