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

---

Definitions:

Union Contracts

Legal agreements between labor unions and employers that outline terms of employment, wages, benefits, working conditions, and dispute resolution procedures.

Assembly Lines

Production method where a product is assembled step by step in a pre-defined sequence often enhancing efficiency and productivity.

Finished Product

A good or product that has completed the manufacturing process and is ready for sale or use by the consumer.

Efficient Way

An efficient way refers to a method or approach that achieves a goal with minimal waste of time, resources, or effort.