Which transaction would not be recorded under cash-basis accounting?
A)Providing services to customers for cash.
B)Paying one year of rent in advance.
C)Paying salaries to employees.
D)Purchasing supplies on account.

Question

Quizplus · Accepted Answer

Under cash-basis accounting, transactions are recorded when cash changes hands. Purchasing supplies on account does not involve an immediate cash transaction, so it would not be recorded until the cash is actually paid.

Which Transaction Would Not Be Recorded Under Cash-Basis Accounting