3. Accrual Accounting Concepts

From an accrual accounting perspective, label the following events as an expense or not an expense:

• An employee works all week for the company:

•The company pays the employee for the past two weeks of work:

•The company occupies a space for a month

•The company pays for a year's worth of rent

A company has provided you with the following information about January's income. If the company uses a cash basis of accounting, what is their net income for the month of January?

If the company uses an accrual basis of accounting, what is their net income for the month of January?