Under accrual-basis accountingSelect answer from the options belownet income is calculated by matching cash outflows against cash inflows.cash must be received before revenue is recognized.events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.

Accrual basis of accounting is a system where:Question 5Answera.The receipts are recorded when cash is not received while expenditures are recorded only when cash is paidb.The receipts are recorded only when cash is received while expenditures are recorded only when cash is paidc.Revenue is recorded when there is commitment and expenditure recorded when services is received.d.Revenue recorded when earned and expenditures recorded when benefits are received

The special feature of accrual basis of accounting is *a. recording expenses only when cash is paidb. recording revenues only when cash is receivedc. recording adjustments only if it has a favorable effect on the company’s incomed. recording revenues and expenses when they are earned and incurred regardless of when cash is received or paid.

Under the accrual basis of accounting, revenues are reported in the accounting period when the

The Cash basis of accounting is a system where:Question 7Answera.The receipts are recorded only when cash is received while expenditures are recorded only when cash is paidb.Revenue recorded when earned and expenditures recorded when benefits are receivedc.The receipts are recorded when cash is not received while expenditures are recorded when cash is paidd.The receipts are recorded when service is received while expenditures are recorded when cash is paidClear my choice

When a cash disbursement in payment of an accounts payable is recordedSelect one:a.the liability account is increasedb.the income statement is changedc.the liability account is decreasedd.the cash account is unchanged