Cavalier Company experienced the following set of events:May: Receives cash from customers for services to be provided in June. June: Provides services to customers who prepaid in May. May: Pays cash for supplies but does not use them. June: Uses supplies purchased in May.Required: 1. Indicate in which month Cavalier records revenues under a. Accrual-basis accounting. b. Cash-basis accounting. 2. Indicate in which month Cavalier records expenses under a. Accrual-basis accounting. b. Cash-basis accounting.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cavalier Company experienced the following set of events:

May: Receives cash from customers for services to be provided in June.
June: Provides services to customers who prepaid in May.
May: Pays cash for supplies but does not use them.
June: Uses supplies purchased in May.

Required:
1. Indicate in which month Cavalier records revenues under
a. Accrual-basis accounting.
b. Cash-basis accounting.
2. Indicate in which month Cavalier records expenses under
a. Accrual-basis accounting.
b. Cash-basis accounting.

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