Which of the following are true of financial statements prepared on the cash basis of accounting?

I. Expenses are recorded only when invoices from suppliers are received.

II. Revenues are overstated if the company sells on credit.

III. When cash is collected, a sale is recorded.

VI. Expenses will be distorted if fixed assets are purchased during the year.

A.) I, II

B.) III, IV

C.) I, II, III

D.) II, III, IV