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

Intermediate Financial Management (MindTap Course List)
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Chapter22: Providing And Obtaining Credit
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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
Expert Solution
Step 1

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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