Which Transaction Would Not Be Recorded Under Cash-Basis Accounting

question 136

Multiple Choice

Which transaction would not be recorded under cash-basis accounting?

• A)Providing services to customers for cash.
• B)Purchasing one year of rent in advance.
• C)Paying salaries to employees.
• D)Purchasing supplies on account.

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Definitions:

Open Shops

Workplaces where joining a union is not a condition for employment, allowing for both union and non-union employees.

Pure Monopsony Power

A market condition where there is only one buyer for a product or service, giving that buyer significant control over prices.

Strike and Lockout

Labor disputes where employees refuse to work (strike) and employers prevent employees from working (lockout) to settle disagreements, typically over employment terms.

Union Shop

A workplace where new employees must join the union representing them within a certain period of time as a condition of their employment.