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.
Anexpenseincurredin2014isnotpaiduntil2015.Usingtheaccrualbasisofaccounting,theexpenseshouldappearon:
A. the2014incomestatement.
B. the2015incomestatement.
C. neitherthe2014northe2015incomestatement.
D. boththe2014and2015incomestatements.