Question

Under accrual-basis accounting cash must be received before revenue is recognized. events that change a company’s...

Under accrual-basis accounting

cash must be received before revenue is recognized.
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.
net income is calculated by matching cash outflows against cash inflows.
the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.
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Answer #1

Under Accural-Basis Accounting

1-False

Explanation-Cash is not the critera in accural -basis in Revenue Recognition,Revenue is Recognized when it is earned.

2-True

Explanation-All the period transaction are recorded in that period only of which the accounts are being prepared irrespective of cash is received or not . Occurance is taken into Consideration.

3-False

Explanation-Net Income is calculated by deducting Expense incurred from Revenue Earned. That is "Net Income=Revenue Earned-Expense Incurred"

4-False

Explanation-It is to adjusted to reflect  a Accural Basis of Accounting.

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