refers to converting a noncash item to cash, fos example, collecting an account receivable. a. Actualization b. ition Realiza Materialization e. Transformation 2. The matches revenues with the costs associated with earning those revenues and is not sensitive to the timing of expenditures. a. tax basis of accounting b. modified accrual basis of accounting c. cash basis of accounting d. accrual basis of accounting e. present value basis of accounting Chapter 2 3. Accounting is the balance sheet equatiop, which shoys the equality of a assets yith liabilities phus shareholders' equity b. asseis plus liabilities with shareholders' equi ets plus shareholders' equity with liabilities. d. assets with liabilities minus shareho quity e. assets with shareholders' equity minus liabilities