What are the advantages of cash accounting for a small business?

What will be an ideal response?


Cash accounting lets the owners know exactly how much money the business has at a given time. If cash inflows are exceeding expenses, then the owners can invest the extra cash, buy capital equipment, or pay bonuses. If cash outflows in the near future will exceed available cash, then the owners can ask creditors for delays of payments or ask its bank for a short-term loan.

Health Professions

You might also like to view...

________ The immune system consists of the tissues, organs, and physiologic processes used by the body to identify abnormal cells, foreign substances, and foreign tissues, such as transplants, and defend against those substances that might be harmful to t

Indicate whether the statement is true or false

Health Professions

________ are important because cells, especially those in the nerves, heart, and muscles, use them to carry electrical impulses (nerve impulses, muscle contractions) across themselves and to other cells.

A. Electric currents B. Electronics C. Electrolytes D. Enzymes

Health Professions

When taking dental histories, it is important to gather information on both parents' and siblings' history of caries. This should be done in addition to evaluating nutritional and oral hygiene habits

A) Both statements are true. B) Both statements are false. C) First statement is true, second statement is false. D) First statement is false, second statement is true.

Health Professions

Numbers, letters, images, and symbols that are not interpreted or processed are classified as ____________________

Fill in the blank(s) with correct word

Health Professions