Which of the Following Would Result in an Increase in Income

question 38

Multiple Choice

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

• A)Purchase of supplies for cash
• B)Performance of services on account
• C)Use of supplies purchased earlier
• D)Receipt of cash for services that were performed earlier on account

---

Definitions:

Population Variance

A measure of the dispersion of a set of data points in a population, showing how much the data deviates from the mean of the population.

Population Proportion

A measure indicating the ratio of members in a defined category to the total population size.

Interval Estimate

A range of values derived from sample data within which a population parameter is estimated to lie, usually defined by two numbers representing the upper and lower limits.

Population Standard Deviation

A measure of the variability or dispersion of a population dataset, representing the square root of the variance.