hich of the following steps are taken to convert an accrual statement to a cash-basis resentation? 1. Earnings distortions related to non-cash entries are eliminated II. The balance sheet is restated to include relevant data from the income statement III. Cash outflows for long-term investments made are recognized IV. Cash requirements not met through external sources reduce the cash account on the balance sheet a. 1& III b. II \& IV c. I, III \& IV d. II, III \& IV