Recognize debts paid during the period Correct errors
Question 17. Question: Which of the following statements is incorrect?
An income statement reports revenues earned less expenses incurred
An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments
Interim financial reports can be based on one-month or three-month accounting periods
Property, plant and equipment are referred to as plant assets
Question 18. Question: On January 1 a company purchased a five-year insurance policy for $ 1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:
Recognize debts paid during the period Correct errors
Question 17. Question: Which of the following statements is incorrect?
An income statement reports revenues earned less expenses incurred
An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments
Interim financial reports can be based on one-month or three-month accounting periods
Property, plant and equipment are referred to as plant assets
Question 18. Question: On January 1 a company purchased a five-year insurance policy for $ 1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: