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

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Definitions:

Development

The process of growth and change that a person goes through over their lifetime, encompassing physical, cognitive, and socio-emotional changes.

Opinion

An individual's belief or judgment about something, not necessarily based on fact or knowledge.

Reciprocal Influences

A concept indicating that two or more factors affect each other mutually, shaping outcomes or behaviors in a bidirectional manner.

Incremental Models

Theoretical models in which change is considered steady and specific to particular behaviors or mental activities, rather than being marked by major, sweeping reorganizations that affect many behaviors at once, as in stage theories.