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

Question

Quizplus · Accepted Answer

Accrual accounting records transactions when they occur, regardless of when cash is exchanged. Purchasing inventory on account means that the inventory is received, but payment is not made until later. This transaction would be recorded under accrual accounting but not under cash-basis accounting, which only records transactions when cash is exchanged. A, B, and D involve cash being collected or exchanged and would be recorded under both accrual and cash-basis accounting.

Which of the Following Transactions Would Be Recorded Under Accrual