Indicate whether each of the following events would be included in a calculation of net income on the cash basis, the accrual basis, or both. Provide a brief explanation for your treatment. Remember that under accrual accounting, inventory is expensed in the period it€™s sold or used up and sales are recorded when the goods and services are provided tocustomers:

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Net income on the Net income on the Economic Event cash basis accrual basis Example: An entity sells merchandise for Yes, because cash Yes, because a sale is collected fromwith a customer has cash. a customer. been completed a. An entity receives a deposit from a b. An entity provides services to a customer c. Inventory paid for last year is sold to a d. Inventory paid for this year is sold this year customer for services that will be provided next year this year that were paid for last year customer this year. Inventory is purchased on credit this e. year but is sold by the end of the year f. Inventory is purchased on credit this year but hasn't been sold by the end of the year