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Which of the following steps are taken to convert an accrual statement to a cash-basis presentation? 1. Earnings distortions related to non-cash entries are eliminated II. The balance sheet is restated to include relevant data from the income statement III. Cash outflows for long-term investments made are recognized IV. Cash requirements not met through external sources reduce the cash account on the balance sheet O I & III O II & IV O I, III & IV O II, III & IV

Which of the following steps are taken to convert an accrual statement to a cash-basis presentation? 1. Earnings distortions related to non-cash entries are eliminated II. The balance sheet is restated to include relevant data from the income statement III. Cash outflows for long-term investments made are recognized IV. Cash requirements not met through external sources reduce the cash account on the balance sheet O I & III O II & IV O I, III & IV O II, III & IV

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following steps are taken to convert an accrual statement to a cash-basis presentation? 1. Earnings distortions related to non-cash entries are eliminated II. The balance sheet is restated to include relevant data from the income statement III. Cash outflows for long-term investments made are recognized IV. Cash requirements not met through external sources reduce the cash account on the balance sheet I & III II & IV O I, III & IV O II, III & IV
Transcribed Image Text:Which of the following steps are taken to convert an accrual statement to a cash-basis presentation? 1. Earnings distortions related to non-cash entries are eliminated II. The balance sheet is restated to include relevant data from the income statement III. Cash outflows for long-term investments made are recognized IV. Cash requirements not met through external sources reduce the cash account on the balance sheet I & III II & IV O I, III & IV O II, III & IV
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