Which of the following transactions would be recorded under accrual-basis accounting but NOT under cash-basis accounting?

Question

Quizplus · Accepted Answer

Accrual-basis accounting records the purchase of inventory on account as an expense, even if cash has not yet been paid. However, cash-basis accounting only records expenses when cash is paid. The other transactions listed (collecting cash from customers, borrowing money from the bank, issuing stock for cash) would all be recorded under both accrual-basis and cash-basis accounting.

Which of the Following Transactions Would Be Recorded Under Accrual-Basis