company has repair work done in December and pays the service provider in January. How would this be recorded under the cash and accrual methods? Group of answer choices It’s an expense in December under the accrual method and an expense in January under the cash method

College Accounting (Book Only): A Career Approach
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ISBN:9781305084087
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Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
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A company has repair work done in December and pays the service provider in January. How would this be recorded under the cash and accrual methods?

Group of answer choices
It’s an expense in December under the accrual method and an expense in January under the cash method
It’s an expense in December under both the accrual and cash methods
It’s an expense in January under both the accrual and cash methods
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Solution:

This will be recorded as under:

"It’s an expense in December under the accrual method and an expense in January under the cash method".

 

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