Question

In ______basis of accounting , actual cash receipts and actual ...

Answer 1

ANSWER :

★ Cash Basis of Accounting.

• ✎ In cash basis of accounting, actual cash receipts and actual cash payments are recorded in the books of accounts.

____________________________________________________________

EXPLANATION :

❍ Cash basis of Accounting is a method of accounting in which only the cash transactions are recorded in the books of account. In other words, transactions are recorded in the books of account in the accounting year in which case is actually received or paid under cash basis of accounting.

• ➻ Only those transactions which give rise to receipt or payment of cash including banking transactions are recorded in the books of accounts and no record is made for any amount which is due or accrued under this method.

• ➻ Under the cash basis of accounting, profit is equal to the difference between the cash receipts and cash payments relating to revenue items during a given financial period.

• ➻ Units with cash transactions prefer under this basis of accounting.

• ➻ Accurate profit or loss can not be ascertained under cash basis of accounting.

• ➻ Application of the cash basis of accounting usually doesn't required technical knowledge.

• ➻ Cash basis accounting is generally used by professionals rendering service such as doctors, lawyers, Chartered accountants etc. for determining the net income.

Answer 2

Answer:

cash

Explanation:

fill in the blank..