a. Office supplies purchased at the beginning of the year and debited to an expense account. b. Property taxes incurred during the year, to be paid in the first quarter of the subsequent year 36. Which of the following is an example of an accrued expense? c. Depreciation expense 37. Which of the following statements is true about the accrual basis of accounting? a. The timing of cash receipts and disbursements is emphasized b. A minimal amount of record keeping is required in accrual basis accounting compared to cas, basis c. This method is used less frequently by businesses than the cash method of accounting. d. Revenues are recognized in the period the performance obligation is satisfied, regardless of the time period the cash is received d. Rent recognized during the period, to be received at the end of the year 38. Which of the following properly describes a deferral? A. Cash is received after revenue is recognized. h. Cash is received before revenue is recognized. c. Cash is paid after expense is incurred. d. Cash is paid in the same time period that an expense is incurred. 39. During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets Supplies in the amount of $28,800 were purchased. Actual year-end supplies amounted to $6,600. The adjusting entry for store supplies will a. increase net income by $22,200. b. increase expenses by $22,200. c. decrease supplies by $6,600. d. debit Accounts Payable for $6,600. 40. When an expense is paid in cash before it is used, it is called a(n) 3. prepaid expense. b. accrued expense. c. estimated expense. d. cash expense