Which of the Following Situations Would Result in an Increase

question 67

Multiple Choice

Which of the following situations would result in an increase in income under the accrual basis of accounting, but would not result in an increase in income under the cash-basis of accounting?

• A)cash received from a customer in advance of the service being performed
• B)writing off an uncollectible account receivable
• C)receipt of cash for services that were performed earlier on account
• D)performance of services on account

---

Definitions:

Consolidate

In financial context, to combine assets, liabilities, and other financial items of two or more entities into one.

Consolidated Balance Sheet

A financial statement that aggregates all assets, liabilities, and equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Subsidiary

A company that is controlled by another company, referred to as the parent company.

Loaned

Refers to money or assets that have been lent to another party under an agreement to be repaid, often with interest.