Question
The following data are taken from the cash-basis accounting records of L7p Company for the year ended December 31, 2019: Selected Data as of December
The following data are taken from the cash-basis accounting records of L7p Company for the year ended December 31, 2019: Selected Data as of December 31, 2019 Customers billed in 2019 for services provided $130 Cash collections in 2019 for accounts billed in 2018 45 Cash collections in 2019 for accounts billed in 2019 300 Cash paid for supplies purchased in 2018 65 Cash paid for salaries incurred in 2019 15 Cash paid on May 1, 2019 for annual advertising from May 1, 2019 to April 30, 2020 18 Required: Please choose the best answer to the following questions based on the above information. What is the amount of revenues under cash-basis accounting in 2019? multiple choice 1 $345 $475 $130 $300 What is the amount of expenses under cash-basis accounting in 2019? multiple choice 2 $80 $98 $33 $27 What is the amount of expenses under accrual-basis accounting in 2019? multiple choice 3 $27 $80 $33 $98
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