Consider the Following Transactions: 1

Multiple Choice

Consider the following transactions: 1.The company uses supplies purchased in the previous period,$1,500.2.The company pays cash for rent in advance,$6,000.3.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