During the current period, a company recognizes revenue for services provided to customers who paid in advance in the previous period. When the balance of the Deferred Revenue account decreases in the current period:

Multiple Choice

• Accrual-basis net income is less than cash-basis net income.

• Accrual-basis expenses exceed cash collections from customers.

• Accrual-basis revenues exceed cash collections from customers.

• Accrual-basis revenues are less than cash collections from customers.