The amount of accrual-basis expense is ________ while the amount of cash-basis expense is ________.

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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