Consider the following events for Sophia Incorporated:
April 5$\quad$ Sophia purchases volleyballs for $\$ 200$ on account.
April 6$\quad$ Sophia advertises a sand volleyball camp for $\$ 20$ a person.
April 12 $\quad$Thirty people sign up for the camp paying a total of $\$ 600$.
April 21$\quad$ Sophia hosts the sand volleyball camp.
April 23 $\quad$Sophia pays for the volleyballs purchased on April 5.
Under cash-basis accounting,what is the appropriate day to record the expenses related to the sand volleyball camp?

Question

Consider the following events for Sophia Incorporated: 
April 5$\quad$ Sophia purchases volleyballs for $\$ 200$ on account.
April 6$\quad$ Sophia advertises a sand volleyball camp for $\$ 20$ a person.
April 12 $\quad$Thirty people sign up for the camp paying a total of $\$ 600$.
April 21$\quad$ Sophia hosts the sand volleyball camp.
April 23 $\quad$Sophia pays for the volleyballs purchased on April 5.
Under cash-basis accounting,what is the appropriate day to record the expenses related to the sand volleyball camp?

Quizplus · Accepted Answer

Under cash-basis accounting, expenses are recorded when cash is paid. Sophia pays for the volleyballs on April 23, so the expense is recorded on that day.

Consider the Following Events for Sophia Incorporated: April 5 \quad

Consider the Following Events for Sophia Incorporated:
April 5 $\quad$