ApersonperformedserviceinMarchanddidnotreceivecashfromthecustomeruntilJuly.Underaccrualaccountingthepersonrecognizesrevenue:
A. inMarch.
B. inJuly.
C. ineitherMarchorJuly.
D. atatimethatcannotbedeterminedfromthefacts.
WhichofthefollowingtransactionswouldberecordedunderaccrualaccountingbutNOTundercash-basisaccounting?
A. Collectingcashfromcustomers
Borrowingmoneyfromthebank
C. Purchasingofinventoryonaccount
D. Issuingstockforcash
Adefectofcash-basisaccountingis:
A. theincomestatementwillbeincorrect.
B. thebalancesheetwillbeincorrect.
C. boththeincomestatementandthebalancesheetwillbeincorrect.
D. eithertheincomestatementorthebalancesheetwillbeincorrect.