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5) Adjusting entries often involve cash. 6) Adjusting entries are typically prepared on a weekly basis. _7) Accumulated Depreciation appears on the balance sheet as a liability account. 1 8) Net Income is a specific account in a company's chart of accounts. 9) A net loss results when assets are greater than liabilities. T 10) Reporting 10) Reporting revenues when they are earned and expenses when they are incurred is called accrual basis accounting. MULTIPLE CHOICE (2 points each) D 11) An example of an account that could be included in an accrual adjustment for revenue is: A) Rent Receivable. B Interest Payable. C) Cash. 12) Adjustments help to ensure that all are recorded in the period in which they are earned. A) revenues Bcash transactions C) journal entries 13) A deferral adjusting entry that adjusts assets (such as prepaids and supplies); A decreases total assets because cash is paid at the time of the adjustment B\expenses the amount used during the period. C) increases total assets because costs are incurred. 14) Interest earned and receivable on a note receivable equals $75 for the month of March. What adjusting entry, if any, should be recorded as of March 31? A) Debit Cash $75 and credit Interest Revenue $75. B) Debit Interest Receivable $75 and credit Interest Revenue $75. ) Debit Interest Revenue $75 and credit Interest Receivable $75