Pawn Shops Unlimited Recorded the Following Four Transactions During April

question 70

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.

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Definitions:

Speedy Trial Motion

A legal motion filed to ensure a defendant is brought to trial within the legally mandated time frame.

Death Penalty

A legal sentence to death as punishment for a crime, also known as capital punishment.

Probation

When a convicted defendant is released from confinement but is still under court supervision for a period of time.

Sentence

The punishment, or penalty, ordered by the court to be inflicted on a person convicted of a crime.