CRITICAL THINKING CHALLENGE QUESTIONS Would cash accounting be more appropriate than accrual accounting for a business that only for transactions (ie. no transactions on credit)? Explain. uses cas 8. aged analysis is more accurate than calculating 9. Do you think allowing for doubtful debts based on an based on the period's income eaned on credit? Justify your answer. 10. A statement of changes in equity showed owner's drawings exceeding profit for three consecutive years Is business survival viable under these circumstances? Explain. 11. Why are businesses not allowed to change accounting policies on an ad-hoc basis? Refer to an enhancing qualitative characteristic to support your response