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(T/F) Both SAP and GAAP accrue and recognize investment income as it is earned.

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Final answer:

Both SAP and GAAP accrue and recognize investment income as it is earned.

Step-by-step explanation:

True. Both SAP (Systems Applications and Products in Data Processing) and GAAP (Generally Accepted Accounting Principles) recognize investment income as it is earned. Accrual accounting, which is followed by both SAP and GAAP, recognizes revenues and expenses when they are incurred, regardless of when payment is received or made.

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