22 5. Which of the following is TRUE? Select one: a. The adjusted trial balance must be prepared before adjusting entries are recorded. b. Prepaid expenses are paid and recorded in an asset account after they are used or consumed. c. Under accrual accounting, expenses are recorded when paid. d. Without an adjusting entry for accrued interest expense, liabilities and interest expense are understated, and net income and stockholders' equity are overstated. evious page Quiz navigation Next p