_____ would result in a decrease in income under both the accrual and cash basis.
A)The recognition of last period's rent
B)The payment of this period's rent
C)The payment of next period's rent
D)The cash purchase of inventory

Question

Quizplus · Accepted Answer

Under both the accrual and cash basis of accounting, the payment of this period's rent would result in a decrease in income. This is because, under the accrual basis, expenses are recognized when incurred (which would be this period for this period's rent), and under the cash basis, expenses are recognized when cash is paid out.

_____ Would Result in a Decrease in Income Under Both