Which of the Following Entries Would Be Recorded ONLY If $$\begin{array} { | l | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Accounts receivable } & & 1,000 \\\hline\end{array}$$

question 124

Multiple Choice

Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Accounts receivable } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Salary expense } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Service revenue } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Supplies } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Sales Account

An account in the general ledger that records the revenue from goods sold or services rendered to customers.

Accounts Receivable

The balance of money owed to a firm for goods or services delivered or used but not yet paid for by customers.

Credit Sale

A transaction in which goods or services are provided to a customer with an agreement to pay at a later date.

Accounts Receivable

Accounts receivable is the money that is owed to a company by its customers for goods or services that have been delivered but not yet paid for.