Which of the following entries would be recorded if a company is using the cash-basis method of accounting?
A) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1000 & \
\hline \text { Accounts receivable } & & 1000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Salary expense } & 1000 & \
\hline \text { Salary payable } & & 1000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Rent expense } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Prepaid rent } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$

Question

Which of the following entries would be recorded if a company is using the cash-basis method of accounting?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1000 & \
\hline \text { Accounts receivable } & & 1000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Salary expense } & 1000 & \
\hline \text { Salary payable } & & 1000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Rent expense } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Prepaid rent } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Under the cash-basis method, transactions are recorded when cash is actually received or paid. Entry C reflects a cash payment for rent, which aligns with cash-basis accounting.

Which of the Following Entries Would Be Recorded If a Company