1. _____ are expenses that have been paid but are yet to be recognized.

a. Accounts receivables

b. Accounts payable

c. Accrued expenses

d. Prepaid expenses

2. The financial statement that summarizes the changes in the owners equity that have occurred during a specific period of time, such as a month or a year is called _____.

a. income statement

b. statement of owners equity

c. balance sheet

d. statement of cash flows