Which of the Following Transactions Would Be Recorded at the Time

question 113

Multiple Choice

Which of the following transactions would be recorded at the time the transaction occurs under the accrual basis, but would not be recorded until sometime in the future under the cash basis?

• A) issuance of stock
• B) payment of employee salaries
• C) sale of merchandise on account
• D) payment of interest expenses

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Income Tax Expense

The amount of money a company pays in taxes based on its earnings.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, highlighting the business's operating, investing, and financing activities.

Sales Adjusted

Sales adjusted refers to the revenues after making necessary adjustments for returns, allowances, and discounts to the gross sales figure.