TRUE/FALSE. Write T if the statement is true and F if the statement is false. between a cash basis accounting system and an 26) The major difference accrual basis accounting 26) system is the timing of recording revenues and 27) In cash basis accounting, revenue is recorded when cash is received, and expenses are when they are paid 28) Under accrual basis 28) accounting, revenue is recorded only when cash is received. 29) The accrual method is an easier accounting method to follow than cash basis accounting because it 29) follow than senerally requires less knowledge of accounting concepts and principles 30)_ S0) The revenue recognition principle tells accountants when to record revenue and requires companies to follow a three step process 31) A contract can only have one performance obligation. 32) 32) Financial statements can be prepared from the unadjusted trial balance. and net 33) 33) If a company fails to make an adjusting entry to record accrued expenses, the liabilities income will be overstated. 34) 34) The balance sheet is the first financial statement that is prepared at the end of the period. 35) 35) Assets and liabilities are presented in a different order on a balance sheet prepared following IFRS than on a balance sheet prepared following U.S. GAAP. 36) Prepaid Rent is always classified as a long-term asset. 37) The operating cycle is the time span required for a business to repay its long-term liabilities. 38) A net loss from the balance sheet decreases Retained Earnings. 37) 38) 39) 39) Liquidity is a measure of how quickly an item can be converted to net income. 40) The closing process helps in measuring each period's net income separately from all other periods. 41) Permanent accounts are not closed at the end of the accounting period 42) In the closing process, the Dividends account is closed to the Retained Earnings account. 40) 42) 43) The permanent accounts-assets, liabilities, and stockholders' equity-are closed to the Common43) Stock account. 44) A worksheet is a substitute for the financial statements. 44) 45) The post-closing trial balance shows the updated Retained Earnings balance. 45)