Which of the following transactions would be recorded under accrual-basis accounting but NOT under cash-basis accounting?
A: Borrowing money from the bank.
B: Collecting cash from customers.
C: Issuing stock for cash.
D: Purchasing of inventory on account.
A: Borrowing money from the bank.
B: Collecting cash from customers.
C: Issuing stock for cash.
D: Purchasing of inventory on account.
举一反三
- Which of the following transactions would be recorded under accrual accounting but NOT under cash-basis accounting?
- Which<br/>of the following situations would result in an increase in income<br/>under the accrual method of accounting, but would NOT result in an<br/>increase in income under the cash-basis method of accounting?(). A: Purchase of supplies for cash B: Performance of services on account C: Use of supplies purchased earlier D: Receipt of cash for services that were performed earlier on account
- Which<br/>of the following situations would result in an increase in income<br/>under the accrual method of accounting, but would NOT result in an<br/>increase in income under the cash-basis method of accounting? ( ) A: Purchase<br/>of supplies for cash B: Use<br/>of supplies purchased earlier C: Performance<br/>of services on account D: Receipt of cash for services that were performed earlier on account
- The accrual basis of accounting commonly results in financial statements that are less comparable from period to period than the cash basis of accounting.
- Under the accrual basis of accounting, revenues are reported in accounting period when the: A: Cash is received B: Service or goods have been delivered C: Cash is paid D: Expense matches the revenues or is used up