nerdexam
American_Bankers_Association

CTFA · Question #11

It is actually a method of preparing financial statements in which only transactions involving actual cash outlays are recorded.

The correct answer is A. Cash basis. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

It is actually a method of preparing financial statements in which only transactions involving actual cash outlays are recorded.

Options

  • ACash basis
  • BExpense
  • CEquity
  • DCash deficit

How the community answered

(34 responses)
  • A
    74% (25)
  • B
    3% (1)
  • C
    15% (5)
  • D
    9% (3)

Topics

#cash basis accounting#financial statements#accounting method

Community Discussion

No community discussion yet for this question.

Full CTFA Practice