This transaction will decrease income under both the accrual basis and the cash basis of accounting.
A)cash purchase of inventory
B)payment of next period's rent
C)payment of current period's rent
D)purchase of inventory on account

Question

Quizplus · Accepted Answer

The payment of current period's rent will decrease income under both the accrual basis and the cash basis of accounting because it represents an expense incurred during the current period.

This Transaction Will Decrease Income Under Both the Accrual Basis