Would Result in an Increase in Net Income Under the Accrual

question 74

Multiple Choice

would result in an increase in net income under the accrual basis, but not an increase in net income under the cash basis.

• A) The expiration of prepaid rent.
• B) Cash collection from a credit customer
• C) The cash sale of inventory at a sales price in excess of cost
• D) The sale of inventory on account at a sales price in excess of cost

---

Definitions:

Apple Orchard Owner

An individual or entity that manages and operates an apple orchard, responsible for the cultivation and harvest of apples.

Decentralizing Decision Making

The distribution of decision-making authority away from a central figure or location to lower-level employees or divisions within an organization.

Information Transfer

The process of conveying data from one place, person, or entity to another.

Incentive Compensation

A form of payment designed to motivate and reward employees for exceeding their performance targets or objectives.