Indicate which statement is not based on the Accrual basis of Accounting.
When an amount owing, which clearly will not be recovered, cannot be kept in the records as an asset.
All expenses incurred in order to produce income should be charged to that income in the year in which it was earned.
The period when earned or incurred is irrelevant for accrual basis of accounting
Income is reported when earned, and •expenses, when incurred.