Homework Answers
Answer: c. If Silver uses the accrual method, $195,000 in 2018 and $0 in 2019
Explanations:
a. if Silver uses the cash method, $175,000 in 2018 and $20,000 in 2019. So option a is incorrect
b. If Silver used the cash method, $175,000 in 2018 and $20,000 in 2019. So option b is incorrect
c. If Silver uses the accrual method, $195,000 (175,000 + 20,000) in 2018 and $0 in 2019. So, option c is correct
d.If Silver uses the accrual method, $195,000 (175,000 + 20,000) in 2018 and $0 in 2019. So, option d is incorrect
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