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
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.