A Company Received a $10,000 Deposit from a Customer for Goods

Multiple Choice

A Company received a $10,000 deposit from a customer for goods to be delivered the following month. Under the accrual and cash basis of accounting respectively the deposit would be recorded as

A) Accrual Basis: a liability | Cash Basis: a liability
B) Accrual Basis: a liability | Cash Basis: income
C) Accrual Basis: income | Cash Basis: a liability
D) Accrual Basis: income | Cash Basis: income
E) Accrual Basis: an asset | Cash Basis: an asset