A business makes a cash payment to a supplier for office supplies that were purchased earlier on account. Which of the following accounts is debited?

Which of the following statements is true of accrual basis accounting?

A) Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP). B) Accrual basis accounting records expenses only when cash has been paid for them. C) Accrual basis accounting records revenue only when cash is received. D) Accrual basis accounting always results in greater net income than cash basis accounting.

Sandra's son starts college soon. She has lived in her home for 10 years. What financing option would be preferable for Sandra to obtain funds to pay for her son's schooling?

A) participation financing B) open end loan C) wraparound loan D) home equity loan