Compared to accrual basis of  accounting cash basis of acctg understates income by net decrease during the acctg period of

                  Account receivable     accrued expenses

a)                       yes                            yes

b)                       yes                             NO

c)                        No                              No

d)                        No                              yes

The answer is D, can anyone please help me understand ths question  

http://www.cpanet.com/cpa%5Fforum/forum_posts.asp?TID=25956

Zeratul,

Thanks a lot for the explanation. That makes everything so clear.