5. Under the accrual basis of 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 the period in which cash is paid or received. D) the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. 6. Which statement is correct? A) As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use. B) The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles C) The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received D) As long as management is ethical, there are no problems with using the cash basis of accounting