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Under accrual-basis accounting A. events that change a company's financial statements are recognized in the period they occur rather than in the period in which
Under accrual-basis accounting
A. | 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. | |
B. | net income is calculated by matching cash outflows against cash inflows. | |
C. | the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. | |
D. | cash must be received before revenue is recognized. |
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