Which of the Following Entries Would Be Recorded If a Company

question 22

Multiple Choice

Which of the following entries would be recorded if a company is using the cash-basis method of accounting?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1000 & \\
• \hline \text { Accounts receivable } & & 1000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Salary expense } & 1000 & \\
• \hline \text { Salary payable } & & 1000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Rent expense } & 1000 & \\
• \hline \text { Cash } & & 1000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Prepaid rent } & 1000 & \\
• \hline \text { Cash } & & 1000 \\
• \hline
• \end{array}\]

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Definitions:

Problem Solving

The process of identifying solutions to difficult or complex issues through analytical thought, creativity, and logical reasoning.

Distributive Justice

The principle concerned with the fair allocation of resources among diverse members of a community.

Autonomous Morality

The stage where individuals recognize the flexibility of rules and laws, basing their judgments on the intentions behind actions rather than the actions themselves.

Conventional Moral Reasoning

A level of moral development in which individuals' judgments are based on compliance with societal rules and norms, typically observed in adolescence.