Expenses are incurred by a rationally managed business only as a result of the adjustment process to produce liabilities to produce assets to earn revenues QUESTION 8 1. Explanations for transactions are found in a company's journal chart of accounts ledger trial balance QUESTION 9 1. Failure to record wages owed to employees at year-end will result in all of the following except a(n)? understatement of liabilities understatement of assets overstatement of owner's equity understatement of a net loss QUESTION 10 1. How many performance obligations does Sierra Corporation have with the Lewis family? QUESTION 11 1. In financial accounting, depreciation refers to? the decline in value of an asset systematic and rational allocation of an assets cost to the periods in which it is used to produce revenues the obsolescence of an asset the physical deterioration of an asset QUESTION 12 1. Supplies should be expensed during the accounting period when a company? pays for the supplies orders the supplies receives the supplies uses the supplies QUESTION 13 1. The Accumulated Depreciation account represents: the total depreciation expense for the current reporting period the total depreciation expense recorded since the beginning of the current calendar year the total depreciation expense taken over the life of the asset the total cash accumulated to replace the asset