Question: hi please explain on conceptual basis for the correct answers...
Hi, please explain on conceptual basis for the correct answers. Thanks
*120. Jim Yount, M.D., keeps his accounting records on the cash basis. During 2015, Dr. Yount collected $350,000 from his patients. At December 31, 2014, Dr. Yount had accounts receivable of $40,000. At December 31, 2015, Dr. Yount had accounts receivable of $70,000 and unearned revenue of $10,000. On the accrual basis, how much was Dr. Yount's patient service revenue for 2015?
b. $370,000.(correct answer)
*121. The following information is available for Ace Company for 2014:
Disbursements for purchases $1,360,000
Increase in trade accounts payable 100,000
Decrease in merchandise inventory 40,000
Cost of goods sold for 2014 was
a. $1,500,000.(correct answer)
*118. Compared to the accrual basis of accounting, the cash basis of accounting overstates income by the net increase during the accounting period of the
Accounts Receivable Accrued Expenses Payable
a. No No
b. No Yes (correct answer)
c. Yes No
d. Yes Yes