obtain 20X5 accrual basis net income, should these decreases be added to or deducted from cash basis net income?
obtain 20X5 accrual basis net income, should these decreases be added to or deducted from cash basis net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Give me answer within 45 min please I will give you upvotes its very urgent ....thankyou...
![Riley Co. wants to convert its 20X5 financial
statements from the cash basis of accounting to
the accrual basis. Both supplies inventory and
office salaries payable decreased between
January 1, 20X5, and December 31, 20X5. To
obtain 20X5 accrual basis net income, should
these decreases be added to or deducted from
cash basis net income?
Decrease in supplies inventory
in office salaries payable
Decrease
Added, Deducted
Deducted, Deducted
Deducted, Added
Added. Added
Deducted, Deducted](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fded2bb9e-8d1c-42ec-a898-d412c9b00479%2Fb403ef85-16ea-4895-be5b-3788fd3af1d5%2F3qlvwec_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Riley Co. wants to convert its 20X5 financial
statements from the cash basis of accounting to
the accrual basis. Both supplies inventory and
office salaries payable decreased between
January 1, 20X5, and December 31, 20X5. To
obtain 20X5 accrual basis net income, should
these decreases be added to or deducted from
cash basis net income?
Decrease in supplies inventory
in office salaries payable
Decrease
Added, Deducted
Deducted, Deducted
Deducted, Added
Added. Added
Deducted, Deducted
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