As you consider whether or not to invest in Gibby Company, you want information regarding the claims of creditors against the assets of the business. To find this, you should look at the _______.

a. statement of cash flows

b. income statement

c. statement of retained earnings

d. balance sheet

- _____________ is a non-cash expense.

a. Accounts receivable expense

b. Depreciation expense

c. Supplies expense

d. Accounts payable expense

e. Salaries expense

- Gibby Company provides tax services to its clients in the current accounting period. Gibby requires its clients to pay for the services at the time the services are provided. Which of the following is true?

a. only under the cash basis of accounting would revenue be recorded in the current period

b. only under the accrual basis of accounting would revenue be recorded in the current period

c. revenue would be recorded in the current period under both the cash basis and accrual basis of accounting

d. revenue would NOT be recorded in the current period under either the cash basis or accrual basis of accounting