Question

Which of the following transactions would be recorded if using the accrual basis of accounting but not if using the cash basis of​ accounting? A. Paying off loans B. Purchasing inventory on account C. Collecting customer payments D. Borrowing money

Answer 1

Answer:

B. Purchasing inventory on account

Explanation:

The Purchase of inventory on account is not recorded when the cash basis of accounting is recorded but where as it is recorded when accrual basis of accounting is used.

Answer 2

Answer:

Purchasing inventory on account

Explanation:

Purchasing inventory on account would be recorded if using the accrual basis of accounting but not if using the cash basis of accounting.

In case the purchases were made on credit accrual basis of accounting will be able to record it