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Select the FALSE statement. A. Accruals are cash lags and examples are rent payable and rent receivable. B. Deferrals are cash leads and examples

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Select the FALSE statement. A. Accruals are cash lags and examples are rent payable and rent receivable. B. Deferrals are cash leads and examples are prepaid interest and interest received in advance. C. The depreciation expense adjusting entry credits a contra-asset account. D. The cash basis is required under Generally Accepted Accounting Principles. E. The cash basis recognizes cash received as revenue and cash paid as expense.

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