Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting?
A) $$\begin{array} { | l | r | r | }
\hline \text { Salary expense } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1000 & \
\hline \text { Service revenue } & & 1000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Supplies } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1000 & \
\hline \text { Accounts receivable } & & 1000 \
\hline
\end{array}$$

Question

Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Salary expense } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1000 & \
\hline \text { Service revenue } & & 1000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1000 & \
\hline \text { Accounts receivable } & & 1000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Under the accrual method, revenue is recorded when earned, not when cash is received. Entry D reflects cash received for a previously recorded receivable, which is specific to accrual accounting.

Which of the Following Entries Would Be Recorded ONLY If Salary expense 1000 Cash 1000\begin{array} { | l | r | r | } \hline \text { Salary expense } & 1000 & \\\hline \text { Cash } & & 1000 \\\hline\end{array} Salary expense Cash ​1000​1000​​

Which of the Following Entries Would Be Recorded ONLY If $\begin{array} { | l | r | r | } \hline \text { Salary expense } & 1000 & \\\hline \text { Cash } & & 1000 \\\hline\end{array}$