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Look at the effects on accrual income and cash base income in the period revenue in accrued and is the next period when you collect cash. Ano, look at the effects on actual income and cash bosis income in the period Interestere a curd and in the next period when you pay car Question 1 Imagine for a moment out the balance in Accounts Receivable incremes during a period to the entire bounce in the account is pruuter than the brain starch would the effect of these transaction produce more cowl income or cash income! What the balance in Nedocreder! Deeston 12 Nowingine at the balance in interest Posle rammes during a period will the effect of these transactions podemos contar can be income) What the balance et Payable de Reply Look at the effects on accrual income and cash basis income in the period revenue is accrued and in the next period when you collect cash. Also, look at the effects on accrual income and cash basis income in the period interest expense is accrued and in the next period when you pay cash. Question #1: Imagine for a moment that the balance in Accounts Receivable increases during a period (i.e., the ending balance in the account is greater than the beginning balance). Would the effect of these transactions produce more accrual income or cash basis income? What if the balance in A/R decreases? Question #2: Now imagine that the balance in Interest Payable increases during a period. Would the effect of these transactions produce more accrual income or cash basis income? What if the balance in Interest Payable decreases

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