Assume Accrual Basis Accounting Is Used

question 95

Multiple Choice

Assume accrual basis accounting is used.Which of the following statements about income statement accounts is correct?

• A) Costs incurred to help generate revenue are only reported as expenses on the income statement if they are paid in cash in the same period as the revenue received.
• B) Revenue accounts are shown after the amount of expense accounts on the income statement.
• C) Revenue accounts include Cash, Accounts Receivable, and Unearned Revenue.
• D) There is no Net Income account.

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