a. C. a. C. a. 3. At the end of an accounting period, financial statements need to be adjusted for the following reasons: The accrual basis of accounting is a requirement of GAPP b. The cash basis of accounting is not an acceptable method for use in financial reporting The timeliness principle, the revenue recognition principle and the matching principle d. All of the above 4. Straight line depreciation is calculated as: The estimated value of an asset at the end of its useful life divided by number of years the asset has been in use b. The cost of an asset minus the estimated value of the asset at the end of its useful life The estimated value of an asset divided by its estimated useful life d. All of the above 5. An example of permanent account is Withdrawals b. Revenue c. Utility Expense d. Cash 6. An example of current asset is a. Intangible assets b. Property, plant and equipment Accounts Payable d. Merchandise Inventory 7. At the end of March, OMG Studio had $200 outstanding salaries that were earned in March but not yet paid. Select the appropriate journal entry: Debit Salaries Payable $200, credit Salaries Expense $200 b. Debit Salaries Expenses $200, credit Salaries Payable $200 c. Debit Salaries Expenses $200, credit Cash $200 d. Debit Supplies Asset $200, credit Supplies Payable $200 C. a