6. Adjusting journal entries are made at the end of the period when Management reports its adjustments on the statement of cash flows The company reports revenue Cash receipts and payments occur before or after the point in time when revenues and expenses should be recognized under the accrual basis of accounting The cash basis of accounting is used for all accounting periods a. b. c. d. 7. What is the effect on the accounting equation when a company recognizes rent as eamed that had previously been received in advance from the customers? a. Revenues decrease b. Assets increase C. Net income increases d. Liabilities increase