Which of the Following Entries Would Be Recorded by a Company

question 197

Multiple Choice

Which of the following entries would be recorded by a company that uses the cash basis method of accounting?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Accounts Receivable } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Salaries Expense } & 1,000 & \\
• \hline \text { Salaries Payable } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Prepaid Rent } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Rent Expense } & 1,000 & \\
• \hline \text { Cash } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Motoric Function

Pertaining to movement; related to the physical actions and skills of the body.

Kinesthesis

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.

Vestibular Senses

The sensations generated by receptors in the semicircular canals of the inner ear that inform us about the head’s orientation and movements.

Olfaction

The sense of smell, which is the ability to detect and interpret airborne molecules.