zhao2vic
Jan 26, 2008, 06:13 AM
Which of the following circumstances would result in a decrease in income under the accrual basis but would not result in a decrease in income under the cash basis?
a) Purchase of inventory on account
b) Payment of two months rent in advance
c) The expiration of prepaid rent
d) The return of defective inventory purchased on account, where full credit was given
e) The payment of the current period's utility bill
Explain why you chose d particular ans. Thx lots!:)
a) Purchase of inventory on account
b) Payment of two months rent in advance
c) The expiration of prepaid rent
d) The return of defective inventory purchased on account, where full credit was given
e) The payment of the current period's utility bill
Explain why you chose d particular ans. Thx lots!:)