When a set of financial statements is prepared using the cash basis or the modified cash basis of accounting, which one of the following is least likely to be an appropriate financial statement title? A. Statement of Cash Receipts and Cash Disbursements. B. Balance Sheet. C. Income Statement. D. Statement of Financial Position.

Question

Business

Korbin Hunt

20 July, 12:30

When a set of financial statements is prepared using the cash basis or the modified cash basis of accounting, which one of the following is least likely to be an appropriate financial statement title? A. Statement of Cash Receipts and Cash Disbursements. B. Balance Sheet. C. Income Statement. D. Statement of Financial Position.

+5

Answers (1)

Know the Answer?

Diya Stephens · Answer 1

C. Income Statement.

Explanation:

When the set of financial statements is prepared using the cash basis or the modified cash basis of accounting, the most important statements are as follows:

A. Statement of Cash Receipts and Cash Disbursements: This statement derives the cash receipts with respect to cash sales, other fees earned, etc

And, the cash disbursements stated the expenses which are paid in cash

B: Balance Sheet: It records the stockholder equity, assets, and liabilities.

C. Statement of Financial Position: This statement is also known as the balance sheet which gives the analysis of the financial position, performance pf the business organization.

The income statement records all expenses and all revenues which are based on an accrual basis of accounting plus it gives appropriate values.