Which of the Following Transactions Would Be Recorded Under Accrual

question 79

Multiple Choice

Which of the following transactions would be recorded under accrual accounting but NOT under cash-basis accounting?

• A)collecting cash from customers
• B)borrowing money from the bank
• C)purchasing of inventory on account
• D)issuing stock for cash

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Definitions:

Algae

A diverse group of photosynthetic organisms, ranging from unicellular microalgae to large multicellular forms, that are typically found in aquatic environments.

Insect Larvae

are the juvenile form of insects following hatching from eggs, before metamorphosing into their adult forms.

Detritus Food Chain

A series of processes by which nutrients are recycled in an ecosystem, starting from organic waste and decomposing organisms to detritivores and then to their predators.

Decaying Matter

Organic material that is breaking down through the process of decomposition by microorganisms.