Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting?
A) $$\begin{array} { | l | r | r | }
\hline \text { Salary expense } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1000 & \
\hline \text { Service revenue } & & 1000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Supplies } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1000 & \
\hline \text { Accounts receivable } & & 1000 \
\hline
\end{array}$$

Question

Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Salary expense } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1000 & \
\hline \text { Service revenue } & & 1000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 1000 & \
\hline \text { Cash } & & 1000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1000 & \
\hline \text { Accounts receivable } & & 1000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Under the accrual method of accounting, revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is received or paid. In the given entry, the company has earned service revenue but has not yet received cash. Therefore, this entry would only be recorded if the company is using the accrual method of accounting.

Which of the Following Entries Would Be Recorded ONLY If Salary expense 1000 Cash 1000\begin{array} { | l | r | r | } \hline \text { Salary expense } & 1000 & \\\hline \text { Cash } & & 1000 \\\hline\end{array} Salary expense Cash ​1000​1000​​

Which of the Following Entries Would Be Recorded ONLY If $\begin{array} { | l | r | r | } \hline \text { Salary expense } & 1000 & \\\hline \text { Cash } & & 1000 \\\hline\end{array}$