Pawn Shops Unlimited Recorded the Following Four Transactions During April

question 154

Multiple Choice

Pawn Shops Unlimited recorded the following four transactions during April.Which of these transactions would have the same income statement impact in April regardless of whether the company used accrual-basis or cash-basis accounting?

• A)Purchased $500 of office supplies on account (supplies were used in May and paid for in May).
• B)Paid $1,800 for a six-month insurance policy covering the period July 1-December 31.
• C)Paid $700 for an advertisement that appeared in the May 17 edition of the Las Vegas Sun newspaper.
• D)Received $300 from customers for services performed in March.

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Parking Space

A designated location for parking a vehicle, often marked in a parking lot or garage.

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A historically significant or traditionally designed sailing vessel, often valued for its craftsmanship and aesthetics.

Bound In Contract

The status of being legally obligated to fulfill the terms agreed upon in a contract.

Price Quote

An estimate provided to a potential buyer that outlines the sale price and other terms of sale for goods or services.