Under the Accrual Basis of Accounting

Multiple Choice

Under the accrual basis of accounting

A) cash must be received before revenue is recognized.
B) net income is calculated by matching cash outflows against cash inflows.
C) revenue is recognized when earned, while expenses are recognized when incurred to generate revenue.
D) the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.