Which Transaction Would Not Be Recorded Under Cash-Basis Accounting

question 146

Multiple Choice

Which transaction would not be recorded under cash-basis accounting?

• A)Providing services to customers for cash.
• B)Paying one year of rent in advance.
• C)Paying salaries to employees.
• D)Purchasing supplies on account.

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Definitions:

Fraud

A deliberate deception to secure unfair or unlawful gain, often financial in nature. It can involve various schemes, including embezzlement, identity theft, and forgery.

Internationally

Pertains to activities, transactions, or operations that occur between or involve more than one country.

Interest Expense

The cost incurred by an entity for borrowed funds, usually presented on the income statement as a cost of financing.

Note Payable

A written promise to pay a specific amount of money, usually including interest, at a future date or under specific conditions.