A Company received a $10,000 deposit from a customer for goods to be delivered the following month. Under the accrual and cash basis of accounting respectively the deposit would be recorded as
A. Accrual Basis: a liability | Cash Basis: a liability
B. Accrual Basis: a liability | Cash Basis: income
C. Accrual Basis: income | Cash Basis: a liability
D. Accrual Basis: income | Cash Basis: income
E. Accrual Basis: an asset | Cash Basis: an asset

Answer rating: 100% (QA)

Answer The correct option is b Accrual Basis a liability Cash Basis income When cash moves ... View the full answer