Question Details

Revenue should be recorded when it has been earned, not when the related cash has been collected



TRUE OR FALSE:

1.	The amount of profit would always be equal to the ending cash balance.


	2.	One can obtain a clear picture of a company's liquidity by referring to its income statement.

	

	3.	One can obtain a clear picture of a company's liquidity by referring to its statement of cash flows.


	4.	Revenue should be recorded when it has been earned, not when the related cash has been collected.


5.	Expenses should be recorded when they are paid, not when they have been incurred.



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