- Under accrual-basis accounting A) cash must be received before revenue is recognized. B) net income is calculated by matching cash outflows against cash inflows. C) events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. D) the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. The following is selected information from Motley Corporation for the fiscal year ending October 31, 2013. Cash received from customers $300,000 350,000 180,000 Revenue earned Cash paid for expenses Cash paid for computers on Novmber 1, 2012 that will be used for 3 years (annual depreciation is $16,000) Expenses incurred, not including any depreciation Proceeds from a bank loan, part of which was used to pay for the computers Based on the accrual basis of accounting, what is Motley Corporation's net income for the year ending October 31, 2013? A) $62,000. B) $104,000. C) $114,000. D) $130,000. 48,000 220,000 100,000