Income Statement For Month Ended December 31 Balance Sheet December 31 Consulting rev $1,150 Der expe 300 Salanes je Statement of Retained Earnings For Month Ended December 31 Retained earnings, December 1 Plus: Net income. A LE 2.3010 21.7 1410 3,785 3,705 I UM 1,000 Less: Cash dividends. 200 Sates come Retained eanings, December 31 Knowledge Check 01 The primary difference between the accrual basis and the cash basis of accounting is: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) The accrual basis records revenues when services or products are delivered and records expenses when cash is paid. The accrual basis records revenues when services or products are delivered and records expenses when incurred The cash basis records revenues when services or products are delivered and records expenses when paid The cash basis records revenues when cash is received and records expenses when cash is paid