5. Under accrual-basis accounting a. cash must be received before revenue is recognized. b. net income is calculated by matching cash outflows against cash inflows. c. events that change a company's financial statements are recognized in the period they occur rather than in d. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are pre 8. If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity a will decrease because a net loss has occurred. b. is in error because a mistake has occurred. C. will not be affected. d. will increase because net income has occurred