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

Question

Quizplus · Accepted Answer

Purchasing inventory on account would be recorded under accrual accounting because it represents an obligation to pay in the future, even though no cash has been exchanged at the time of the transaction. Under cash-basis accounting, transactions are only recorded when cash is received or paid, so this transaction would not be recorded. Collecting cash from customers, borrowing money from the bank, and issuing stock for cash would all be recorded under both accrual and cash-basis accounting.

Which of the Following Transactions Would Be Recorded Under Accrual