An Auditor Is Reporting on Cash Basis Financial Statements

Multiple Choice

An auditor is reporting on cash basis financial statements.These statements are best referred to in his opinion by which of the following descriptions?

A) Financial position and results of operation arising from cash transactions.
B) Assets and liabilities arising from cash transactions,and revenue collected and expenses paid.
C) Balance sheet and income statement resulting from cash transactions.
D) Cash balance sheet and the source and application of funds.