QUESTION 5

Which of the following statements is true?

		The accrual method means that the expense is recognized after the cash is paid out.
		The purpose of the accrual method is to attempt to match assets with liabilities in appropriate accounting periods.
		GAAP-based financial statements are prepared according to the cash rather than the accrual basis of accounting.
		Accounting choices and estimates can have a significant impact on the outcome of financial statement numbers.