Which of the following situations would result in an increase in income under the accrual basis of accounting, but would not result in an increase in income under the cash-basis of accounting?

Question

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Under the accrual basis of accounting, income is recognized when earned, regardless of when the cash is received. Therefore, when services are performed on account (i.e., the service is performed but payment is to be received at a later date), income is recognized at the time of service. Under the cash basis of accounting, income is recognized only when cash is received, so performing services on account does not immediately increase income until the cash is actually received.

Which of the Following Situations Would Result in an Increase