GB 518 RANK Let's Do This /gb518rank.com GB 518 RANK Let's Do This /gb518rank.com | Page 23

Record internal transactions and events
Recognize assets purchased during the
period
Recognize debts paid during the period
Correct errors
Question 17. Question :
statements is incorrect?
Which of the following
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: