ABC Co. wants to convert its 2017 financial statements from the accrual basis of accounting to the cash basis. Both A/R Utility Billing and Accrued Payroll increased between January 1, 2017 and December 31, 2017. To obtain 2017 cash basis net income, how should these increases be added to or deducted from accrualbasis net income?

A/R Utility Billing Accrued Payroll

a. Deducted Deducted

b. Deducted Added

c. Added Deducted

d. Added Added