A company has the following transactions:
Pay employees' salaries for the current period.
Pay rent in advance.
Pay dividends to stockholders in the current period.
Receive (but do not pay) a utility bill.
Use supplies previously purchased.
How many of these transactions result in an expense being reported in the current period using cash-basis accounting?
A) 1.
B) 2.
C) 3.
D) 4.
Answer: B
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