Which of the Following Situations Would Result in an Increase

question 40

Multiple Choice

Which of the following situations 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 method of 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:

Federal Open Market Committee

The branch of the Federal Reserve System that is responsible for setting the direction of monetary policy by buying and selling government securities.

Fed's Governing Board

The main governing body of the Federal Reserve, responsible for setting monetary policy and overseeing the operations of the Federal Reserve Banks.

President

The elected head of a republican state or organization, responsible for leading and sometimes representing the entity in various capacities.

Congress

The national legislative body of a country, particularly in the United States, consisting of the Senate and the House of Representatives.