Under the Accrual Basis of Accounting

Multiple Choice

Under the accrual basis of accounting

A) cash must be received before revenue is recognized.
B) profit is calculated by matching cash outflows against cash inflows.
C) 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.
D) the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.