QUESTION $($

ANSWER

Mystery Book Shoppe receives an electric bill for $$200$ on June $29$th$.$ They will pay the

bill on July $12$th$.$

Mystery Book Shoppe recognizes this expense when it was incurred in the month of

June, even though they will not be paying the bill until July. This is an example of which

basis of accounting?

Cash Basis Accounting

Accrual Basis Accounting

IDON'T KNOWYET