Under the accrual basis ofaccounting
a. Cash must be receivedbefore revenue is recognized
b. Net income iscalculated by matching cash outflows against cashinflows
c. Events that change acompany%u2019s financial statements are recognized in the periodthey occur rather in the period in which cash is paid orreceived
d. The ledger accountsmust be adjusted to reflect a cash basis of accounting beforefinancial statements are prepaid under generally acceptedaccounting principles
Under the accrual basis ofaccounting
a. Cash must be receivedbefore revenue is recognized
b. Net income iscalculated by matching cash outflows against cashinflows
c. Events that change acompany%u2019s financial statements are recognized in the periodthey occur rather in the period in which cash is paid orreceived
d. The ledger accountsmust be adjusted to reflect a cash basis of accounting beforefinancial statements are prepaid under generally acceptedaccounting principles
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Related questions
Under accrual-basis accounting
A. | events that change a company's financial statements arerecognized in the period they occur rather than in the period inwhich cash is paid or received. | |
B. | net income is calculated by matching cash outflows against cashinflows. | |
C. | the ledger accounts must be adjusted to reflect a cash basis ofaccounting before financial statements are prepared under generallyaccepted accounting principles. | |
D. | cash must be received before revenue is recognized. |