Which of the following statements is true? a. Under cash-basis accounting, revenues are recorded when earned and

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Which of the following statements is true?

a. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred.

b. Generally accepted accounting principles require companies to use cash-basis accounting.

c. The key elements of accrual-basis accounting are the revenue recognition principle, the matching principle, and the historical cost principle.

d. Accrual-basis accounting records both cash and noncash transactions when they occur.

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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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