Indicate Whether Each of the Following Independent Events Would Be

Essay

Indicate whether each of the following independent events would be included in a calculation of net income on the cash basis, the accrual basis or both.Provide a brief explanation for your treatment.Use the following format. $\begin{array}{ll}&\text { Net income on the } & \text { Net income on the } \\\text { Transaction }&\text { cash basis \& explanation } & \text { accrual basis \& explanation }\end{array}$
A)
B) Transactions:
A) Company sells goods for cash.
B) Company pays wages for work done last period.
C) Inventory is purchased in current period and sold, but not yet paid for.
D) Purchased and paid for a 5-year license for exclusive rights to sell a product.E) Company agrees to hire a new salesman to start work next period.