The following events pertain to Jasper Corporation:
May 1 Jasper purchased office supplies of $3,000 on account.
May 5 The office supplies were shipped to Jasper.
May 8 Jasper used these office supplies for a one-time event.
May 9 Jasper paid $3,000 cash for the office supplies purchased on May 1.
Using cash-basis accounting, on which date should Jasper record supplies expense?
A) May 1.
B) May 5.
C) May 8.
D) May 9.
Ch3 answer: D
The accounting basis that records revenues when cash is received and expenses when cash is paid is referred to as:
A) Cash-basis.
B) Accrual-basis.
C) Realization-basis.
D) Reporting-basis.
Ch3 answer: A
