1. Under the_____, revenues and their related expenses are reported on the income statement in the period in which a service has been performed or a product has been delivered.

1. cash basis of accounting
2. accrual basis of accounting
3. historical cost concept
4. None of these are correct.

abcd

2. Under the _________, revenues and expenses are reported on the income statement in the period in which cash is received or paid.

1. cash basis of accounting
2. accrual basis of accounting
3. historical cost concept
4. None of these are correct.

abcd

3. An adjusting entry will always involve a revenue or an expense account and an asset or a liability account.

TrueFalse