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

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Definitions:

Insurance Exchanges

Marketplaces established to facilitate the purchase and sale of insurance plans, allowing consumers to compare and choose from various health insurance options.

Foster Competition

To encourage or promote a market environment where businesses compete freely with one another, aiming to improve efficiency and innovation.

Income Increase

A rise in the amount of earnings received over a given period of time, whether from wages, investments, or other sources.

Health Care Demanded

The total amount of health care services that consumers are willing to obtain, influenced by factors like price, income, and insurance coverage.