39. Which of the following statements about the accrual basis of accounting is false? (a) Events that change a company's financial statements are recorded in the periods in which the events occur (b) Revenue is recognized in the period in which services are performed. (c) The accrual basis is in accordance with IFRS. (d) Revenue is recorded only when cash is received, and expense is recorded only when cash is paid 40. The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the: (a) Expense recognition principle. (b) Cost assumption. (c) Time period assumption (d) Revenue recognition principle 41. Adjusting entries are made to ensure that: (a) Expenses are recognized in the period in which they are incurred. (b) Revenues are recorded in the period in which services are performed (c) Statement of financial position and income statement accounts have correct balances at the end of an accounting period. (d) All the responses above are correct. 42. Each of the following is a major type (or category) of adjusting entries except: (a) Prepaid expenses. (b) Accrued revenues. (c) Accrued expenses. (d) Recognized revenues. 43. The trial balance shows Supplies $13,500 and Supplies Expense $0. If NT$6,000 of supplies are on hand at the end of the period, the adjusting entry is: (a) Supplies 6,000 Supplies Expense 6,000 (b) Supplies 7,500 Supplies Expense 7,500 (c) Supplies Expense 7,500 Supplies 7,500 (d) Supplies Expense 6,000 Supplies 6,000 44. Adjustments for prepaid expenses: (a) Decrease assets and increase revenues. (b) Decrease expenses and increase assets. (c) Decrease assets and increase expenses. (d) Decrease revenues and increase assets