Pawn Shops Unlimited Recorded the Following Four Transactions During April

question 118

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)Received $600 from customers for services to be provided 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 April 17 edition of the Las Vegas Sun newspaper.
• D)Received $300 from customers for services performed in March.

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Definitions:

New Government

The establishment of a new system of political authority, often following a revolution, reform, or major political change within a country.

First Continental Congress

A gathering of delegates from twelve of the Thirteen Colonies in 1774, which met to address grievances against British policies and to organize colonial resistance.

King George III

The monarch of Great Britain and Ireland during the late 18th century, notably during the American Revolutionary War.

Petition

A petition is a formal written request, often signed by many people, appealing to authority in respect of a particular cause.