Overview $-$ Cash Versus Accrual Accounting Methods

Adjustments to assets, liabilities and income are always linked.

A company prepares financial statements using the cash method. Which of the following is the least likely?

Decrease liabilities and increasing income to get closer to accrual statements.

Increasing liabilities and reducing income to get closer to accrual statements.

Decreasing assets and increasing income to get closer to accrual statements.

Increasing assets and increasing income to get closer to accrual statements.