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. Borrowing moneyb. Paying off loansc. Purchasing inventory on accountd. Collecting customer payments

Answer 1

c. Purchasing inventory on account

Step-by-step explanation:

Purchase of inventory on account is not to be recorded when cash basis of accounting is recorded...where as it is recorded when accrual basis of accounting is used.