Compared to the accrual basis of accounting, the cash basis of accounting overstates income by the net increase during the accounting period of the

Accounts Receivable Accrued Expenses Payable

a. No No

b. No Yes

c. Yes No

d. Yes Yes

Jim Yount, M.D., keeps his accounting records on a cash basis. In 2026, Dr. Yount collected $390,000 from his patients. At December 31, 2025, Dr. Yount had accounts receivable of $40,000. At December 31, 2026, Dr. Yount had accounts receivable of $70,000 and unearned revenue of $10,000. On the accrual basis, what was Dr. Yount's patient service revenue for 2026?

a. $350,000

b. $410,000

c. $420,000

d. $430,000

The following information is available for Ace Company for 2025:

Disbursements for purchases $1,560,000

Increase in trade accounts payable 100,000

Decrease in merchandise inventory 40,000

Cost of goods sold for 2025 was

a. $1,700,000.

b. $1,620,000.

c. $1,500,000.

d. $1,420,000.