Question 11 (5 points)

Which of the following statements is TRUE?

Question 11 options:

	The finance manager uses the framework of the income statement to find the operating income of the company (an accounting measure), which is also the true cash flow from operations.
	In accrual-based accounting, revenue is recorded at the time of sale if the revenue has been received in cash.
	Three fundamental issues separate net income and cash flow: accrual accounting, non-cash expense items, and interest expense.
	Generally Accepted Accounting Principles (GAAP) in the United States do not allow the use of accrual accounting to record revenue.