Pawn Shops Unlimited Recorded the Following Four Transactions During April

question 87

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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Definitions:

Structure

The arrangement or organization of atoms within a molecule, determining its shape, properties, and reactivity.

Melting Point

The temperature at which a solid becomes a liquid at atmospheric pressure, indicative of the purity and molecular structure of substances.

Dichlorobenzene

An aromatic compound with the formula \(C_6H_4Cl_2\), existing in three isomeric forms, and used as a solvent, deodorant, and in the manufacture of other chemicals.

Highest Wavelength

Refers to the longest wavelength of light within a spectrum, typically associated with the lowest energy transition.