Garcia Company recognized revenue on account. The recognition will affect which of the following financial statements?

• Balance sheet

• Statement of cash flows

• Income statement and the balance sheet<<

• Income statement

Yang Company recognized accrued salary expense. The recognition will affect which of the following financial statements?

Income statement

Balance sheet

Income statement and the balance sheet<<

Statement of cash flows

On December 31, Year 1 Adam Company incurred $3,000 of accrued salary expense. The Year 2 recognition of the cash payment for these expenses

increases the amount of salary expense recognized in Year 2.

decreases the amount of salary expense recognized in Year 2.<<

increases the amount of liabilities shown on the Year 2 balance sheet.

decreases the amount of liabilities shown on the Year 2 balance sheet.

On October 1 of Year 1 Lesikar Company paid $1,200 cash for an insurance policy that would provide protection for a one year term. Which of the following shows how the required adjustment on December 31, Year 1 will affect Lesikars ledger accounts?

I picked this one

Assets	=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
(1,200)		1,200

Assets	=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		(300)						(300)

Assets	=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		3,600		3,600

Assets	=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		(900)						(900)

Assets	=	Liabilities	+	Stockholders Equity
Cash	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
		1,200						(1,200)

On October 1 of Year 1 Wilburn Company paid cash for an insurance policy that would provide protection for a one year term. Which of the following shows how the required adjusting entry on December 31, Year 1 will affect Wilburns financial statements?

I picked

Balance Sheet	Income Statement	Statement of Cash Flow
Assets=Liab. +Equity	Rev - Exp = Net Inc	-OA
- = NA + -	NA - NA = NA