7 Practice Problem Set - Week 8 Context: You are working for a company that is asking you to perform some analysis on some company financials. The company is doing great and you are being asked to perform the following analysis to report back to the CFO! Respond to the following situation. Company A wants to convert its 20X4 financial statements from the cash basis of accounting to the accrual basis. Both supplies inventory and office salaries payable decreased between January 1, 20X4, and December 31, 20X4. To obtain 20x4 accrual basis net income, should these decreases be added to or deducted from cash basis net income? A. Supplies inventory added; Office salaries payable deducted. B. Supplies inventory deducted; Office salaries payable deducted. C. Supplies inventory deducted; Office salaries payable added. D. Supplies inventory added; Office salaries payable added. E. None of the above.