Accrual basis accounting: According to this basis of accounting, revenue should be recognized at the time when it is earned, irrespective of whether the cash received or not, and expense should be recognized at the time when it is incurred, irrespective of whether it is paid or not. To Determine: The accrual basis net income for the year 2018.

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Chapter 2, Problem 2.19E

To determine

Accrual basis accounting:

According to this basis of accounting, revenue should be recognized at the time when it is earned, irrespective of whether the cash received or not, and expense should be recognized at the time when it is incurred, irrespective of whether it is paid or not.

To Determine: The accrual basis net income for the year 2018.

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