Which of the following statements is the most CORRECT? a) The income earned by a solicitor working
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Question:
Which of the following statements is the most CORRECT?
a) The income earned by a solicitor working on her own and employing only one part-time secretary would be derived on an accruals basis.
b) Where there is a fund of circulating capital, and assets are employed in the business, the cash basis of accounting should always be used.
c) Where the receipts represent a reward for the work of a large number of individuals working in a professional services business, the accruals method of accounting would be appropriate.
d) Trading income from the sale of trading stock will always be derived on a cash basis.
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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