Consider the following transactions:
The company uses supplies purchased in the previous period, $1,500.
The company pays cash for rent in advance, $6,000.
The company repays a loan to the bank, $10,000 (ignore any interest cost).
The amount of accrual-basis expense is ________ while the amount of cash-basis expense is ________.
A) $6,000; $11,500
B) $6,000; $16,000
C) $1,500; $16,000
D) $1,500; $6,000
Answer: D
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