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Which statement best explains Cash basis?

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Question ID #25882 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Cash basis?

Correct Answer: C. Recognition of transactions primarily when cash is received or paid
Cash basis: Recognition of transactions primarily when cash is received or paid

Question: Which statement best explains Cash basis?

A. Asset expected to be realized, sold or consumed within the operating cycle or specified short period

B. Expenditure whose benefit is generally consumed within the current accounting period

C. Recognition of transactions primarily when cash is received or paid

D. Recognition of income and expenses when earned or incurred rather than only when cash moves

Correct Answer: C. Recognition of transactions primarily when cash is received or paidCash basis: Recognition of transactions primarily when cash is received or paid

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Which statement best explains Cash basis? - MCQ Explanation

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Correct answer: C. Recognition of transactions primarily when cash is received or paid