Statement 1: Under cash basis, if cash has been collected, revenue is recorded regardless of earning process. Statement 2: Under accrual basis, if the earning process is not complete, revenue is nevertheless recorded. Both statements are true. Both statements are false. Only statement one is true. Only statement two is true.

Statement 1: Under cash basis, if cash has been collected, revenue is recorded regardless of earning process. Statement 2: Under accrual basis, if the earning process is not complete, revenue is nevertheless recorded. Both statements are true. Both statements are false. Only statement one is true. Only statement two is true.

Name: Statement 1: Under cash basis, if cash has been collected, revenue is
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Description: Statement 1: Under cash basis, if cash has been collected, revenue is recorded regardless of earning process. Statement 2: Under accrual basis, if the earning process is not complete, revenue is nevertheless recorded. Both statements are true. B

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1MC: Which of the following statements is false? A. Noncash activities should be reported in accrual...

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