Which of the Following Statements About Cash Basis Accounting and Accrual

question 66

Multiple Choice

Which of the following statements about cash basis accounting and accrual basis accounting is correct?

• A) Using the accrual basis of accounting, if payment is received before delivery of goods or a service, revenue is recorded at the time the payment is received.
• B) Using the accrual basis of accounting, if payment is received after delivery of goods or a service, an asset is recorded at the time the good or service was delivered.
• C) Using the cash basis of accounting, if payment is received before delivery of goods or a service, net income is affected when goods or services are delivered.
• D) Using the cash basis, if payment is received after delivery of goods or a service, unearned revenue is recorded.

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Definitions:

Catharsis

A psychological concept suggesting that expressing or experiencing strong emotions can lead to a sense of emotional release or purification.

Angrier

Feeling more intense anger, a strong emotion resulting from real or perceived grievances.

Repress

The psychological act of unconsciously excluding unwanted thoughts, memories, or desires from conscious awareness.

Vent

To release or express strong emotions, often through speaking or activity.