Which of the following is a drawback of using an accrual accounting system?

Question 1 options:

a. It greatly reduces the demand on bookkeeping.

b. It is only appropriate for cash-based businesses.

c. It may be misleading with respect to understanding a company's actual cash position.

d. It can be used to affect tax bills.

e. It can distort measure of the profitability of a business.

Which of the following is a cash inflow from financing activities?

Question 2 options:

a. Sale of securities

b. Interest from securities

c. Sale of debt or equity

d. Revenue from sale of goods and services

e. Sales of plant, property, and equipment