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A company paid $900 to workers during May. Of this amount $600 was for work performed...

A company paid $900 to workers during May. Of this amount $600 was for work performed in April, whether other $300 was for work performed during May. What would the impact of this Transaction be during May on (1) the balance of cash, (2) cash-basis net income, and (3) accrual-basis net income?

Solutions

Expert Solution

a) The balance of cash decrease by $900

b) Cash basis net income = Net income decrease by $900

c) Accrual basis net income = Net income decrease by $300

ekkarill92 answered 2 years ago
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