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Which of the Following Entries Would Be Recorded by a Company

Question 1

Multiple Choice

Which of the following entries would be recorded by a company that uses the cash basis method of accounting?


A)  Cash 1,000 Accounts Receivable 1,000\begin{array} { | c | r | r | } \hline \text { Cash } & 1,000 & \\\hline \text { Accounts Receivable } & & 1,000 \\\hline\end{array}
B)  Salaries Expense 1,000 Salaries Payable 1,000\begin{array} { | c | r | r | } \hline \text { Salaries Expense } & 1,000 & \\\hline \text { Salaries Payable } & & 1,000 \\\hline\end{array}
C)  Prepaid Rent 1,000 Cash 1,000\begin{array} { | c | r | r | } \hline \text { Prepaid Rent } & 1,000 & \\\hline \text { Cash } & & 1,000 \\\hline\end{array}
D)  Rent Expense 1,000 Cash 1,000\begin{array} { | c | r | r | } \hline \text { Rent Expense } & 1,000 & \\\hline \text { Cash } & & 1,000 \\\hline\end{array}

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