The following events were experienced by Smith Auction Company. Identify the appropriate effect on the cash and/or net income of the business.

Group of answer choices

Paid cash for current month's rent.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Paid cash and signed a note payable to purchase land.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Purchased supplies consumed in the current month on account.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Paid cash for employee salaries accrued in the prior period.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Delivered goods to customers related to cash deposits received in a previous period.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Purchased inventory on account.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Sold services on account.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Received cash related to revenue accrued in a previous period.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Sold inventory for cash.

[ Choose ] Decrease cash. No effect on cash or income. Increase cash. Decrease cash and net income. Decrease net income. Increase cash and net income. Increase net income.

Received notification of a customer's inability to pay an account receivable (using the direct write-off method).