During 2006, a company makes credit sales of $600,000 of which $475,000 is collected at year-end.It pays $300,000 in expenses and owes $30,000 electricityused during 2006.

1)Accrual profit is:

a.300000

b.270000

c.175000

d.145000

e.none of the above

2) What would be the profit if the cash accounting rather than accrual accounting was used??

a.300000

b.275000

c.175000

d.270000

e.none f the above