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In its first year of operations, Grace Company reports the following: Earned revenues of 60,000 (52,00 cash received from customers) ; incurred expenses of 35,000
In its first year of operations, Grace Company reports the following: Earned revenues of 60,000 (52,00 cash received from customers) ; incurred expenses of 35,000 (31,00 cash paid toward them). prepaid 8,000 cash for costs that will not be expensed until next year. Net income under the accrual basis of accounting is? why? Net income under the cash basis of accounting is? Why?
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