[hasy]

Sanni Co. had $150,000 in cash-basis pretax income for the year. At the current year-end, accounts receivable decreased by $20,000 and accounts payable increased by $16,000 from their previous year-end balances. Compared to the accrual-basis method of accounting, Sanni’s cash-basis pretax income is:

Can someone please teach me a trick with these questions because I KNOW I’m not going to answer these right on the exams……

AUD - 83
BEC - 80
FAR - 83
REG - 78

BEC - 80 (Roger + NINJA MCQ + WTB)

FAR - 72; 83 (Roger + NINJA MCQ)

AUD - 83 (Roger + NINJA MCQ + WTB)

REG - 52; 78 (Roger + NINJA MCQ)

Ethics - 68, 96 (how I dislike you)
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This forum is more addictive than drugs. Still returning after licensure.

Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved - Helen Keller

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BEC 80 (10/23/15)
FAR 72 (4/2/15); 83 (7/11/16)
REG 52 (4/28/15)
AUD (9/9/16)

Roger + NINJA MCQ + WTB

[Anonymous]

The $20,000 A/R is cash income but not accrued income because it was already accrued previous year. Similarly, the $16,000 A/P is accrued expense but not cash expense because it has been accrued but not paid. HTH.

[Author]

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