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sage company is operating at 90
Choose the correct answer for the below:
Which of the following statements is true?
a.If a company reports a net loss on its income statement, it should report a decrease in cash on its statement of cash flows.
b.If a company reports net income on its income statement, it should report an increase in cash on its statement of cash flows.
c.If a company uses the accrual basis of accounting, its cash balance can increase even if it reports a net loss.
d.If a company uses the accrual basis of accounting, it will improve its cash position if it reports net income for the same period.
When services are provided, which account is debited?
A. Account payable
B. Service revenue
C. Account receivable
Prepaid accounts (also called prepaid expenses) are generally:
A) Payments made for products and services that never expire.
B) Classified as liabilities on the balance sheet.
C) Classified as equity on the balance sheet.
D) Assets that represent prepayments of future expenses.
E) Promises of payments by customers.