An employee is paid every two weeks. She worked the last week of December and the first week of January, and got paid $2,000 on January 10th. How would this be recorded under the cash and accrual methods? Group of answer choices Under the accrual method, one-half of the amount paid - $1,000 – is an expense in December and the other half is an expense in January; under the cash method, the $2,000
An employee is paid every two weeks. She worked the last week of December and the first week of January, and got paid $2,000 on January 10th. How would this be recorded under the cash and accrual methods? Group of answer choices Under the accrual method, one-half of the amount paid - $1,000 – is an expense in December and the other half is an expense in January; under the cash method, the $2,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An employee is paid every two weeks. She worked the last week of December and the first week of January, and got paid $2,000 on January 10th. How would this be recorded under the cash and accrual methods?
Group of answer choices
Under the accrual method, one-half of the amount paid - $1,000 – is an expense in December and the other half is an expense in January;
under the cash method, the $2,000 is an expense in January.
Under the accrual method, $2,000 is an expense in January and under the cash method $2,000 is an expense in January.
Under the accrual method, $2,000 is an expense in December and under the cash method $2,000 is an expense in January
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