3. X Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. X's practice is an example of: a. Cash basis accounting. b. Accrual accounting. c. The matching principle. d. Economic entity. 7. The income statement of Dolan Corporation for 2021 shows Interest revenue is $121,000 and balances for interest receivable are: December 31, 2021 December 31, 2020 $18,200 $15,000 Interest receivable The cash received for interest during 2021 was a. $102,800. b. $117,800. c. $121,000. $124,200. 10. During an accounting period, if an expense has been incurred and consumed but not yet paid for or recorded, then the end-of-period adjusting entry would involve a. a liability account and an asset account. b. an asset or contra asset account and an expense account. a liability account and an expense account. d. a receivable account and a revenue account. d. 13. XY Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax Net income Retained earnings, 1/1/21, as reported XY should report retained earnings, 1/1/21, as adjusted at a. $1,570,000. b. $2,000,000. c. $2,430,000. d. $3,110,000. $ 430,000 1,000,000 2,000,000