1. Which of the following financial statements provides information about a company's financial position at a specific point in time? a) Income statement b) Statement of cash flows c) Balance sheet d) Statement of retained earnings 2. What is the purpose of the adjusting entries in the accounting cycle? a) To record revenues and expenses for the current period b) To calculate the net income or net loss of a company c) To update the accounts for accruals and deferrals d) To prepare financial statements for external reporting 3. Which of the following methods is used to allocate the cost of an asset over its useful life? a) Straight-line depreciation b) Accelerated depreciation c) Double-declining balance depreciation d) Units-of-production depreciation