(Solved): Under accrual basis accounting, if the balances in both accounts receivable and accounts payable inc ...

Under accrual basis accounting, if the balances in both accounts receivable and accounts payable increase during the year the increase in the accounts receivable balance would result in an increase in cash for the period while the increase in the accounts payable balance would result in a decrease in cash for the period. the increase in the accounts receivable balance would result in a decrease in cash for the period while the increase in the accounts payable balance would result in an increase in cash for the period.

the increase in both accounts receivable and accounts payable balances would result in an increase in cash for the period.