How Many of the Following Statements Regarding the Accrual and Cash

Multiple Choice

How many of the following statements regarding the accrual and cash basis of accounting are true?
Using the accrual basis of accounting, if payment is received before delivery of a good or service, a liability is recorded at the time the payment is received.
Using the accrual basis of accounting, if payment is received after delivery of a good or service, an asset is recorded at the time the good or service was delivered.
Generally accepted accounting principles require the accrual basis of accounting to be used for external financial reporting purposes.

A) None
B) One
C) Two
D) Three