Which of the following statements about the accounting cycle is correct?GAAP allows companies to choose between cash basis and accrual basis of accounting.If debits equal credits in the unadjusted trial balance, you have made no errors in preparing and posting journal entries.The balances for each account reported on an unadjusted trial balance are determined by adding the amounts on the “+” side and subtracting the amounts on the “−” side of each ledger or T-account.A trial balance is included in the full set of external financial statements.
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