Under the accrual basis of accounting, net income is determined by matching the revenues earned during a period with the expenses incurred as a result of the efforts made to produce the revenue.

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This statement is true. The accrual basis of accounting requires that revenue is recognized when earned, regardless of when payment is received, and that expenses are recognized when incurred, regardless of when payment is made. By matching revenues with the expenses incurred to produce those revenues, net income for a period can be determined.

Under the Accrual Basis of Accounting, Net Income Is Determined