This Transaction Will Increase Net Income Under the Accrual Basis,but

question 44

Multiple Choice

This transaction will increase net income under the accrual basis,but will not increase net income under the cash basis.

• A)recording depreciation expense for the month
• B)cash sale of inventory at a sales price in excess of cost
• C)sale of inventory on account at a sales price in excess of cost
• D)cash payment for rent

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Definitions:

Budgeted Income Statement

A financial statement that projects the expected income, expenses, and net profit for a future period based on a budget.