A Company Paid $900 to Workers During May

Multiple Choice

A company paid $900 to workers during May.Of this amount,$600 was for work performed in April,while the other $300 was for work performed during May.What would the impact of this transaction be during May on (1) the balance of cash, (2) cash-basis net income,and (3) accrual-basis net income?

A) (1) No effect, (2) No effect, (3) Decrease.
B) (1) Decrease, (2) Decrease, (3) No effect.
C) (1) Decrease, (2) Decrease, (3) Decrease.