When the Amount of Revenue Collected in Advance Decreases During

question 1

Multiple Choice

When the amount of revenue collected in advance decreases during an accounting period:

• A) Accrual-basis revenues exceed cash collections from customers.
• B) Accrual-basis net income exceeds cash-basis net income.
• C) Accrual-basis revenues are less than cash collections from customers.
• D) Accrual-basis net income is less than cash-basis net income.

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