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If I purchased some supplies or inputs last year that I used to produce something this year (I pre-paid for seed, for example), when I

If I purchased some supplies or inputs last year that I used to produce something this year (I pre-paid for seed, for example), when I am calculating this year's accrual income statement I need to:

a. Ignore that expense because I paid it last year

b. Add that expense to the cash expenses recorded for this year

c. Subtract that expense from the cash expenses recorded for this year

d. Be sure to pre-pay a similar amount this year so the accounting will all work out

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