Green Company incurred $5,000 of accrued expenses during Year 1, but paid the cash associated with the payables in Year 2. Based on this information alone, under accrual accounting, the company would report a net loss of .

net loss of $5,000 and cash outflow from operations of zero in Year 1

Explanation:

The accrual basis refers to the recording of the transactions when it is provided not when the cash is received

Since the accrued expenses is incurred for $5,000 in the year 1 but the cash is paid in the year 2

Based on the accrual accounting, the company would report a net loss for $5,000 and there is an outflow of cash that arise from the operations for the year 1

Therefore the same is to be considered

the answer is d

explanation: