Indicate whether each of the following events would be included in a calculation of net income on the cash basis, the accrual basis, or both. Provide a brief explanation for your treatment:

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a. Economic Event Example: An entity sells merchandise for cash. An entity receives a deposit from a cus- tomer for services that will be provided in the future. b. An entity provides services to a customer this year that were paid for last year. C. An advance is paid to an employee for work she will do in the future. d. Supplies paid for last year are used this year to provide services to a customer. e. Supplies are bought, paid for, and used this year to provide services to a customer. f. A delivery truck is purchased for cash. Net income on the cash basis Yes, because cash is collected from a customer. Net income on the accrual basis Yes, because a sale with a customer has been completed.