True/False Questions 1. Under the accrual basis of accounting, revenues are recorded when earned. 2. The modified cash basis of accounting is used by most large businesses. 3. The modified cash basis...

1. Under the accrual basis of accounting, revenues are recorded when earned.

2. The modified cash basis of accounting is used by most large businesses.

3. The modified cash basis uses the accrual basis when recording revenues and expenses.

4. Under the modified cash basis, interest expense is recorded when paid.

5. Many small professional service businesses use the modified cash basis.