Junction Plants had the following transactions during August. Which transaction represents an expense for August under the accrual basis of accounting?
A) Used $90 worth of office telephone calls. The account will be paid during September.
B) Paid $3300 in settlement of a loan obtained three months earlier.
C) Paid a plumber $500 for repair work performed in July.
D) Purchased a computer for $3000 cash.

Question

Quizplus · Accepted Answer

The Answer of Junction Plants had the following transactions during August. Which transaction represents an expense for August under the accrual basis of accounting?
A) Used $90 worth of office telephone calls. The account will be paid during September.
B) Paid $3300 in settlement of a loan obtained three months earlier.
C) Paid a plumber $500 for repair work performed in July.
D) Purchased a computer for $3000 cash.

Junction Plants Had the Following Transactions During August