Which type of accounting is most relevant when analyzing individuals who do not have a bank account?

• A. Forensic accounting
• B. Managerial accounting
• C. Unbanked accounting
• D. Cash accounting

Answer: (C)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about the type of accounting most relevant for individuals who do not have a bank account. This means we need to focus on accounting methods that deal with cash transactions and minimal reliance on formal banking systems.
2. Review the options provided: Forensic accounting, Managerial accounting, Unbanked accounting, and Cash accounting. Each of these terms has a specific meaning in the field of accounting.
3. Clarify the terms: Forensic accounting involves investigating financial records for legal purposes. Managerial accounting focuses on providing financial information to internal management for decision-making. Cash accounting records transactions when cash is received or paid. 'Unbanked accounting' is not a standard term in accounting.
4. Determine the most relevant type: Since individuals without a bank account primarily deal with cash transactions, the accounting method that tracks cash inflows and outflows directly (Cash accounting) would be the most relevant.
5. Conclude the reasoning: Based on the analysis, Cash accounting is the most appropriate type of accounting for individuals who do not have a bank account, as it aligns with their financial activities.