1. According to the revenue recognition principle, in what accounting period do companies recognize revenue? (What must happen for a company to recognize revenue?) 2. List the two subcategories of deferral accounts and the two subcategories of accrual accounts: Deferrals: Accruals: and and 3. On February 15th, Alvarado Enterprises received a deposit of $4,600 for work in advance. a. Record the transaction for this deposit received on February 15th. Assets Liabilities Equity b. During the month of March, some work was completed and $2,000 can now be recorded as revenue. What adjustment should be recorded to the accounting equation to properly state the accounts at March 31? C. Assets Liabilities Equity If the above adjustment is not recorded at the end of the month, June revenue will be liabilities will be and net income will be (indicate understated or overstated for all three)