2. Generally accepted accounting principles require the accrual basis of accounting. 3. The revenue recognition concept states that revenue should be recorded in the same period as the cash is...

2. Generally accepted accounting principles require the accrual basis of accounting.

3. The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

4. The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

5. The financial statements measure precisely the financial condition and results of operations of a business.

6. An example of deferred revenue is Unearned Rent.

7. Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned.

8. If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

9. Proper reporting of revenues and expenses in a period is due to the accounting period concept.

10. Revenue recognition concept requires that the reporting of revenue be included in the period when cash for the service is received.