Would Result in a Decrease in Net Income Under the Cash

question 15

Multiple Choice

would result in a decrease in net income under the cash basis, but it would not result in a decrease in net income under the accrual basis.

• A) The purchase of inventory on account
• B) The recognition of depreciation expense
• C) The payment of two months of rent in advance
• D) The expiration of prepaid rent

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Definitions:

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