If Newbury Company uses the cash basis of accounting instead of the accrual basis, in what month will Newbury report revenue and in what month will it report expense?
Revenue Expense
a. August                   October
b. September            July
c. August                   August
d. September           October

Jenna Newbury began a music business in July 2018. Newbury prepares monthly financial statements and uses the accrual basis of accounting. The following transactions are Newbury Company’s only activities during July through October:

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Jul 14 Bought music on account for $65, with payment to the due in 90 days. Aug 3 Performed a job on account for Alanna Turner for $55, collectible from her in 30 days. Used up all the music purchased on July 14. Collected the $55 receivable from Turner. Paid the $65 owed to the supplier from the July 14 transaction. supplier Sep 16 Oct 22