Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting?
A) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1,000 & \
\hline \text { Accounts receivable } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Salary expense } & 1,000 & \
\hline \text { Cash } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Supplies } & 1,000 & \
\hline \text { Cash } & & 1,000 \
\hline
\end{array}$$

Question

Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Accounts receivable } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Salary expense } & 1,000 & \
\hline \text { Cash } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Service revenue } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Supplies } & 1,000 & \
\hline \text { Cash } & & 1,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The accrual method of accounting records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged. Entry A, which records an increase in Accounts Receivable, is an example of accrual accounting because it recognizes revenue at the time the service is performed, not when the cash is received.

Which of the Following Entries Would Be Recorded ONLY If Cash 1,000 Accounts receivable 1,000\begin{array} { | l | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Accounts receivable } & & 1,000 \\\hline\end{array} Cash Accounts receivable ​1,000​1,000​​

Which of the Following Entries Would Be Recorded ONLY If $\begin{array} { | l | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Accounts receivable } & & 1,000 \\\hline\end{array}$