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Accrual Basis of Accounting versus Cash Basis of Accounting On December 3 1 , Hermani Patterson completed his first year as a financial planner. The
Accrual Basis of Accounting versus Cash Basis of Accounting
On December Hermani Patterson completed his first year as a financial planner. The following data are available from his accounting records:
a Compute Hermani's net income for the year just ended using the accrual basis of accounting.
$
b Compute Hermani's net income for the year just ended using the cash basis of accounting: $
c Which net income amount is computed in accordance with generally accepted accounting principles?
Please answer all parts of the question.
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