Question: which of the following circumstances would result in a decrease in income under accrual based accounting but not under cash based accounting? 1- purchase of

which of the following circumstances would result in a decrease in income under accrual based accounting but not under cash based accounting?

1- purchase of inventory on account. 2- payment for 2 months rent in advance. 3- the use of prepaid rent. 4- the return of defective inventory purchased on account where full credit was given. 5- the payment of the current pwriods' utility bill.

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