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Problem 1: Which of the following statements about accrual basis accounting is incorrect?
a. Accrual basis accounting records some transactions when cash is received or paid.
b. Accrual basis accounting records some transactions at the end of the period.
c. Accrual basis accounting records transactions only when cash is received or paid.
d. Accrual basis accounting is required by GAAP.
Problem 2: Which of the following principles or assumptions tells us when to record revenues?
a. Revenue Recognition Principle
b. Economic Entity Assumption
c. Time Period Assumption
d. Matching Principle
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