What are the two fundamental characteristics of all financial transaction?

Answer 1

Amount and timing.

Answer 2

Amount and source of funds.

Answer 3

Taxes and source of funds.

Answer 4

Don’t know

Answer 5

The way that the date of a transaction is determined.

Answer 6

The profit calculation.

Answer 7

Cash basis accounting does not require any financial reports.

Answer 8

Don’t know

Answer 9

Accrual basis creates a closer match of costs and benefits within a time period which leads to a truer profitability calculation.

Answer 10

Accrual basis is easier to use than cash basis.

Answer 11

Accrual basis allows the company to delay payments to suppliers.

Answer 12

Don’t know

What is the primary difference between cash basis of accounting and accrual basis of accounting?