Finance General Question: Download Questions PDF
What is Cash System of Accounting?
Cash System of Accounting: This system records only cash receipts and payments. This system assumes that there are no credit transactions. In this system of accounting, expenses are considered only when they are paid and incomes are considered when they are actually received. This system is used by the organizations which are established for non profit purpose. But this system is considered to be defective in nature as it does not show the actual profits earned and the current state of affairs of the organization.
Download Finance General Interview Questions And Answers PDF
|Previous Question||Next Question|
|What is Profitability Statement?||What is Mercantile or Accrual System of Accounting?|