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:

Social Learning

The theory that people learn new behaviors, attitudes, and values by observing the actions and outcomes of others' behaviors.

Empathy-Altruism

A theory suggesting that feeling empathy for another person creates a motivational state aimed at enhancing that person's welfare.

Communal Orientation

A frame of mind in which people don’t distinguish between what’s theirs and what is someone else’s.

Functional Approach

A perspective in various disciplines that emphasizes the purpose and role of something rather than its composition or appearance.