Yellow Co Makes a Sale to a Customer in January but but Does

question 95

Multiple Choice

Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using?

• A) accrual basis of accounting
• B) cash basis of accounting
• C) hybrid basis of accounting
• D) consolidated basis of accounting

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Definitions:

Action Verbs

Verbs that express specific actions, and are used especially in resumes and writing to give a sense of dynamic performance.

Resume

A document presenting an individual's background, skills, and accomplishments, often used for job applications.

Organized

Characterized by a systematized and structured arrangement or approach, facilitating efficiency and orderliness.

Cardiac Stimulant

A cardiac stimulant is any substance that increases heart rate and cardiac output, which can be used in the treatment of various heart conditions.