Blossom Company paid $ 1860 for a 12-month insurance policy and increased the Prepaid Insurance account upon payment on November 1, 2014, Blossom forgot to make an adjusting entry at the end of its fiscal year on December 31, 2014. Which of the following is an effect of the error? Expenses will be overstated and assets will be understated. Assets will be understated and net income will be understated, Assets will be overstated and net income will be understated Expenses will be understated and assets will be overstated, Which statement is not true concerning the accrual basis of accounting? Transactions are recorded when payment is made for the costs incurred. Transactions are recorded when events occur. Revenue is recognized when services are performed. GAAP requires the accrual basis for financial reporting, Which of the following describes shipping terms of FOB shipping point? The seller must absorb the cost of shipping the items. The purchaser is responsible for the shipping charges. At the end of the year, any items in transit should be included as part of the seller's inventory. The shipping charges are debited to Delivery Expense by the buyer