age 1: 1 2 3 4 5 6 7 B 10 9 Question 1 (1 point) Under the accrual basis of accounting: 1) cash must be received before revenue is recognized. 2) net income is calculated by matching cash outflows against cash inflows. 3) 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. 4) the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. Question 2 (1 point) Using accrual accounting, expenses are recorded and reported only 1) when they are incurred whether or not cash is paid. 2) when they are incurred and paid at the same time. 3) if they are paid before they are incurred. 4) if they are paid after they are incurred. Question 3 (1 point) Goods purchased for future use in the business, such as supplies, are called 1) prepaid expenses M