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:

Germinal Period

The period of prenatal development that takes place in the first two weeks after conception. It includes the creation of the zygote, continued cell division, and the attachment of the zygote to the uterine wall.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the skin and nervous system.

Prenatal Development

The progression of maturation and evolution inside the uterus from the moment of conception until the time of delivery.

Germinal

The initial stage of prenatal development that spans from conception to the first two weeks, characterized by rapid cell division and the establishment of the embryo.