Which of the Following Circumstances Would Result in an Increase

question 91

Multiple Choice

Which of the following circumstances would result in an increase in income under the cash basis and an increase in income under the accrual basis?

• A)The return of defective inventory purchased on account,where full credit was given
• B)Cash collection from a credit customer
• C)The cash sale of inventory at a sales price in excess of cost
• D)The expiration of prepaid rent
• E)The sale of inventory on account,at a sales price in excess of cost

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Definitions:

Charles Grandison Finney

A prominent American preacher and leader in the Second Great Awakening, his methods and messages led to significant religious revivals in the 19th century.

Alexis De Tocqueville

A French political thinker and historian best known for his works "Democracy in America," examining the democratic revolution in the United States.

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, emphasizing salvation through faith and the concept of the Trinity.

Liberty

A state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.