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Question 1.5 Net income is equal to the amount of cash the business generated during the period. 2 poi O True False Question 1.6 Adjusting entries should be made before financial statements are prepared for external users. 2 poin O True O False Question 1.7 2 point When a company purchases equipment which will be used over many years to generate revenue, the company should make an adjusting journal entry at the end of the period which reduces the equipment account. O True False Question 1.8 Adjusting journal entries often affect the cash account 2 points True False