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Which of the Following Situations Would Result in an Increase

Question 2

Multiple Choice

Which of the following situations would result in an increase in income under the accrual method of accounting, but would NOT result in an increase in income under the cash- basis method of accounting?


A) Receipt of cash for services that were performed earlier on credit
B) Use of supplies purchased earlier
C) Purchase of supplies for cash
D) Performance of services on credit

Correct Answer:

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