At the Time the Transaction Occurred,which of the Following Would

question 172

Multiple Choice

At the time the transaction occurred,which of the following would result in an increase in net income under the accrual basis of accounting,but would not result in an increase in net 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:

Proportional Tax

A taxation structure where the rate of tax stays the same, no matter the taxable amount.

Retail Sales Tax

A tax imposed on the retail price of goods and services paid by the consumer at the point of sale.

Easily Shifted

A descriptor for economic burdens or benefits that can be transferred or moved easily from one party to another.

Income Tax

A tax levied by governments on individuals or entities' income, affecting earnings from various sources including wages, investments, or profits from business.