Consider the Following Transactions: 1

question 41

Multiple Choice

Consider the following transactions: 1.The company uses supplies purchased in the previous period,$1,500.2.The company pays cash for rent in advance,$6,000.3.The company repays a loan to the bank,$10,000 (ignore any interest cost) .The amount of accrual-basis expense is _____ while the amount of cash-basis expense is _____.

• A)$6,000;11,500
• B)$6,000;$16,000
• C)$1,500;16,000
• D)$1,500;$6,000

---

Definitions:

Anhidrosis

The inability to sweat normally, which can lead to overheating.

Evaporation

The process by which water changes from a liquid to a gas or vapor, often contributing to the water cycle.

Perspiration

The process of sweating, through which the body releases heat and moisture.

Pruritus

A medical term for itching, a sensation that leads to the desire to scratch.