Knowledge Check\ Indicate which statements pertain to the accrual-basis of accounting and which pertain to the cash-basis of accounting.\ Transactions that change a company's financial statements are recorded in the periods in which the events occur.\ Companies recognize expenses when paid.\ Often produces misleading financial statements.\ Companies recognize revenues when they perform the services.

Indicate which statements pertain to the accrual-basis of accounting and which pertain to the cash-basis of accounting. 1. Transactions that change a company's financial statements are recorded in the periods in which the events occur. 2. Companies recognize expenses when paid. 3. Often produces misleading financial statements. 4. Companies recognize revenues when they perform the services