1. Look at the "before and "after" words for Account Category: Property, Plant, & Equipment, and select the correct statement below: A. All of the "before" and "after" words are correct. B. All of the "before" and "after" words are incorrect. C. Some of the "before" and "after words are correct and some of the "before" and "after" words are incorrect. 2. Look at the "before" and "after" words for Account Category: Prepaid Assets, and select the correct statement below: A. All of the "before" and "after" words are correct. B. All of the "before" and "after" words are incorrect. C. Some of the "before" and "after words are correct and some of the "before" and "after words are incorrect. 3. Look at the "before" and "after" words for Account Category: Accrued Liabilities, and select the correct statement below: A. All of the "before" and "after" words are correct. B. All of the "before" and "after" words are incorrect. C. Some of the "before" and "after words are correct and some of the "before" and "after words are incorrect. 4. Look at the "before" and "after" words for Account Category: Unearned Revenue Liabilities, and select the correct statement below: A. All of the "before" and "after" words are correct. B. All of the "before" and "after words are incorrect. C. Some of the "before" and "after" words are correct and some of the "before" and "after" words are incorrect. 5. Look at the "before" and "after words for Account Category 5: Accrued Assets, and select the correct statement below: A. All of the "before" and "after words are correct. B. All of the "before" and "after words are incorrect. C. Some of the "before" and "after words are correct and some of the "before" and "after words are incorrect. Use the table below to answer questions 1 to 5 on Page 1. Summary of Timing Issues Related to Adjusting Entries Account Category Examples When does Cash Flow? When is the Adjusting Entry made, and when is Revenue or Expense Recognized? Property, Plant, & Equipment Cash flows out: *before the adj. entry before expense is recognized *Equipment Buildings Adjusting entry is made after cash flows out Expense is recognized after cash flows out Cash flows out: after the adj entry after expense is recognized Prepaid Assets Prepaid rent *Supplies Adjusting entry is made before cash flows out *Expense is recognized before cash flows out Wages payable Liabilities Interest payable Cash flows out: after the adj. entry before expense is recognized Accrued Adjusting entry is made before cash flows out +Expense is recognized after cash flows out Receive advance Uneamed +Payment Cash flows in after the adj. entry after revenue is recognized Adjusting entry is made before cash flows in Revenue is recognized before cash flows in Revenue for services Liabilities Payment for rent Interest Cash flows in: after the ad entry *after revenue is recognized Accrued receivable Adjusting entry is made before cash flows in Revenue is recognized before cash flows in Assets Unbiled services