1. which of the following transactions would increase net earning under the cash basis but not under accrual basis?

a) sale of inventory in account t. a sales price in excess of the inventory's cost

b)collection of cash from a customer who purchased goods on account in a prior aCCOUNTING period

c) sale of inventory for cash at a sales price in excess of the inventory's cost

d)Return if defective product purchased on account to a supplier where a full credit was given

e)Sake if inventory at a sales price excess of cost, where part of the sales price was paid in cash and part was made on account

2. Omar Zuher started a company by investing $8 000 in cash, the company paid $2000 in advances for rent covering the next 6 months. It acquired inventory for $3 300, charging two third of the purchase on account . It skid inventory costing $1400 for $2900 on account .What is the balance in the cash amount, after all these transactions?

a) $1600 debit

b) $4900 credit

c) $2700 debit

d)$4900 debit

e) $7800 debit