Imagine a firm wherein, all costs were incurred in the first half of the year and all revenue earned in the second half? You would see a semi-annual income statement for the first half of the year reflecting a loss. The second half of the year would reflect a profit. In such a case one can say that:

(a) The income statements are prepared on accrual-basis.

(b) The income statements are prepared on realization-basis.

(c) The income statements are prepared on matching-basis.

(d) The income statements are prepared on cash-basis.