36. Using the accrual basis of accounting, revenues and expenses: a. Should be recorded on the balance sheet b. Are classified as assets c. Are recorded in the same period in accordance with the matching principle d. Should be recorded when cash is received or paid 37. When a business is said to be in its revenue cycle, what type of activities are taking place? a. b. c. d. Selling merchandise inventory Manufacturing finished goods inventory Purchases of merchandise inventory Payment of wages to employees 38. Which of the following statements is true of the accrual basis of accounting? a. b. c. Revenues are recorded when cash is received Expenses are recorded when cash is paid Compared to the cash basis, accrual basis allows more flexibility for companies to choose when they record revenues and expenses Revenues are recorded when earned based on performance d