1) A worksheet is optional it facilitate the journalizing and posting of transactions 2) The two accounting method for prepayment are asset method and liability method. O First statement is false; second statement is true First statement is true second statement is fa O Both statements are false Both statements are true 1 1) Adjusting entries are made to update the books of accounts of the company. 2) The purpose of the trial balance is to reconcile subsidiary ledger balances with general ledger balance O Both statements are false O Flest statement is a second statement is true First statement is true second statement is false O Both statements are tive 2 For a merchandising business, cost of sale plus ending inventory equals O Purchases Cost of goods available for sale O Cost of goods sold O Beginning inventory Which of the following statements is correct? O Prepaid expenses are abilities O Deferred revenues are assets 4 Allowance for doubtful accounts is a contra-asset account UT 5 O Sales that have been earned but have not been collected are liabilities 13 Prepaid insurance is an example of a mixed account requiring adjustment 23 The entry to record depreciation expense is an example of an adjustment that would be reversed if reversing entries are made O Fint statement is the second statement true A debit to P1,000 accounts receivable posted to the debit side of the general ledger as P100 will Understate the accounts receivable by P900. Overstate the accounts receivable by P1100 O Both statements are ta O First statement is the second statement is fal Understate the accounts receivable by P1,100 6 Overstate the accounts receivable by 1900 the rent experne account on December 31 before adjustment is P29,000. At year end. it was ascertained that P12.500 is unexpired. The amount of the required adjustment on December 31 is O P29,000 Out given OP12,500 OP16500 7