Which of the following transactions would be recorded at the time the transaction occurs under the accrual basis,but would not be recorded until sometime in the future under the cash basis?

Question

Quizplus · Accepted Answer

Under the accrual basis, the sale of merchandise on account would be recorded immediately when the sale occurs, even though payment will not be received until a later date. However, under the cash basis, the revenue would only be recorded when payment is received in the future. The other options (B, C, and D) involve cash transactions that would be recorded at the time the transaction occurs under both the accrual and cash basis of accounting.

Which of the Following Transactions Would Be Recorded at the Time