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Which of the Following Entries Would Be Recorded If a Company

Question 2

Multiple Choice

Which of the following entries would be recorded if a company is using the cash-basis method of accounting?


A)  Cash 1000 Accounts receivable 1000\begin{array} { | l | r | r | } \hline \text { Cash } & 1000 & \\\hline \text { Accounts receivable } & & 1000 \\\hline\end{array}
B)  Salary expense 1000 Salary payable 1000\begin{array} { | l | r | r | } \hline \text { Salary expense } & 1000 & \\\hline \text { Salary payable } & & 1000 \\\hline\end{array}
C)  Rent expense 1000 Cash 1000\begin{array} { | l | r | r | } \hline \text { Rent expense } & 1000 & \\\hline \text { Cash } & & 1000 \\\hline\end{array}
D)  Prepaid rent 1000 Cash 1000\begin{array} { | l | r | r | } \hline \text { Prepaid rent } & 1000 & \\\hline \text { Cash } & & 1000 \\\hline\end{array}

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