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4. Which of the following is true about accrual accounting? a. Accrual accounting requires that expenses always be recognized when cash is paid out. b.

4. Which of the following is true about accrual accounting? a. Accrual accounting requires that expenses always be recognized when cash is paid out. b. Accrual accounting is required under GAAP. C. Accrual accounting recognizes revenue only when cash is received. d. Recognition of a prepaid asset (e.g., prepaid rent) is not an example of accrual accounting

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