When the balance of the Deferred Revenue account decreases during an accounting period:

A) Accrual-basis revenues exceed cash collections from customers.

B) Accrual-basis expenses exceed cash collections from customers.

C) Accrual-basis revenues are less than cash collections from customers.

D) Accrual-basis net income is less than cash-basis net income.

Answer: A

Which transaction would not be recorded under cash-basis accounting?

A) Providing services to customers for cash.

B) Paying one year of rent in advance.

C) Paying salaries to employees.

D) Purchasing supplies on account.

Answer: D

When the amount of interest receivable decreases during an accounting period:

A) Accrual-basis revenues exceed cash collections from borrowers.

B) Accrual-basis net income exceeds cash-basis net income.

C) Accrual-basis revenues are less than cash collections from borrowers.

D) Accrual-basis expenses are less than cash payments to borrowers.

Answer: C