Under the accrual basis of accounting, which of the following statements is true?

Under the accrual basis of accounting, which of the following statements is true? 

I. Reported net income provides a measure of operating performance
II. Revenue is recognized when cash is received, and expenses are recognized when payment is made
III. Cash inflows are recognized when they are received, and cash outflows are recognized when they are made



A. I only
B. III only
C. I and III
D. I, II and III



Answer: C


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