MANAGEMENT

Detailed explanation-1: -Financial accounting is also a key for creditors, from banks to bondholders. Because financial statements outline all its assets as well as the short-and long-term debt, lenders get a better sense of a company’s creditworthiness.

Detailed explanation-2: -Under this method, revenue is reported on the income statement only when cash is received. Expenses are recorded only when cash is paid out. The cash method is typically used by small businesses and for personal finances.

Detailed explanation-3: -Bookkeeping is the recording of all financial transactions, including financial records of purchases, sales, receipts and payments, as well as accruals for payables or receivables.

Detailed explanation-4: -What type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customer charge accounts? the accrual method of accounting.