6. Each of the following is a major type (or category) of adjusting entries except: a) prepaid expenses. b) accrued revenues. c) accrued expenses. d) earned revenues. 7. Which of the following statements is incorrect concerning the worksheet? a) The worksheet is essentially a working tool of the accountant. b) The worksheet is distributed to management and other interested parties. c) The worksheet cannot be used as a basis for posting to ledger accounts. d) Financial statements can be prepared directly from the worksheet before journalizing and posting the adjusting entries. 8. The correct order of presentation in a classified balance sheet for the following current assets is: a) accounts receivable, cash, prepaid insurance, inventories. b) cash, Inventories, accounts receivable, prepaid insurance. c) cash, accounts receivable, inventories, prepaid insurance. d) inventories, cash, accounts receivable, prepaid insurance. 9. The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor is: a) outstanding checks. b) a bank error. c) deposit in transit. d) bank service charges 10. Which of the following approaches for bad debts is best described as a balance sheet method? a) Percentage-of-receivables basis b) Direct write-off method c) Percentage-of-sales basis d) Both a and b