When Converting from Cash-Basis to Accrual-Basis Accounting, Which of the Following

question 45

Multiple Choice

When converting from cash-basis to accrual-basis accounting, which of the following adjustments should be made to cash paid for operating expenses to determine accrual-basis operating expenses?

• A) Add beginning accrued liabilities.
• B) Subtract beginning prepaid expense.
• C) Subtract ending prepaid expense.
• D) Subtract interest expense.