Which of the Following Would Result in an Increase in Income

question 147

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 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:

Scatterplot

A graphical representation of data points plotted on a horizontal and vertical axis to visualize the relationship between two variables.

Dependent Variable

The variable in a study that is anticipated to vary as a result of changes made to the independent variable.

Correlation Coefficient

A numerical measure that assesses the strength and direction of a linear relationship between two quantitative variables.

Covariance Value

A measure indicating the extent to which two variables change together, showing if increases in one variable correspond to increases in another.