Question

Which type of accounting records income when cash is received and expenses when cash is paid out? A. Cash tax accounting B. Investment accounting C. Cash basis accounting D. Internal accounting

Answer 1

C. Cash basis accounting

Step-by-step explanation:

The cash basis accounting is the accounting which records only the cash payment and cash receipts transactions.

Whenever cash is received with respect to sale of company products , the same is recorded in the books of accounts as an inflow of cash and whenever cash is paid with respect to expenses the same is recorded in the books of accounts as an outflow of cash

Therefore, the option C is correct