Except at certain points in time, the cash basis of accounting fits in best with the underlying objective of the fiduciary.

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The cash basis of accounting is a method of accounting that records transactions only when cash is received or paid out. This method is often used by small businesses and individuals because it is simple to implement and maintain. The fiduciary duty is a legal obligation that requires a person to act in the best interests of another person. In the context of accounting, the fiduciary duty requires the accountant to prepare financial statements that are accurate and fairly present the financial position of the company. The cash basis of accounting can be used to prepare financial statements that meet the fiduciary duty because it records transactions only when cash is received or paid out. This method provides a clear and accurate picture of the company's financial position at a given point in time.

Except at Certain Points in Time, the Cash Basis of Accounting