Hi! I just need explanation per number because it is already answered correctly (the answer is in bold and italicized), so i'm just gonna ask for the explanation (brief) per number thank you! the answer is already given just explain why that is the answer, thanks

33. Which of the following statements is incorrect?

a. Current liabilities are those due to be settled within 12 months for which the entity have the right at the end of the reporting period to defer settlement beyond 12 months. b. Under IAS 1, an entity must normally present a classified statement of financial position. c. Current assets are assets includes assets that are held primarily for the purpose of trading. d. Current liabilities are liabilities that are expected to be settled within the entity's normal operating cycle.

34. Reversing entries:

a. Are normally prepared for accrued, prepaid and estimated items. b. Are prepared for accruals, prepayments under expense method and deferrals under income method. c. Are desirable to exercise consistency and establish standardized procedures. d. Must be made at year end.

35. A companys building has a 35,000 carrying value at the end of 2013. It is purchased 7 years ago and its annual depreciation is 6,000. Scrap value is determined to be 11,000. What is the cost of the building?

a. 35,000. b. 77,000. c. 42,000. d. Answer not given.

36. A companys building has a 35,000 carrying value at the end of 2013. It is purchased 7 years ago and its annual depreciation is 6,000. Scrap value is determined to be 11,000. What is the buildings useful life?

a. 132 Months. b. 123 Months. c. 120 Months. d. 144 Months.

37. On December 17, 2013, VST Security Agency received 15,000, 8% per annum note from a customer receivable in 45 days for security services rendered. The companys year- end is January 31, 2014. How much interest receivable should VST record for the fiscal year 2014 assuming the customer pays on time?

a. 200. b. 150. c. 50. d. 0

39. Ms. A, an entrepreneur, employs 5 working students to help her in her business. Each student works five days a week (Monday to Friday) for P350 per day and is paid on the following Monday. The last Monday of June is June 28. Her fiscal year is ending June 30. Total cash payment to employees for the first Monday of July should be:

a. 5,250. b. 8,750. c. 1,050. d. 700.

40. Which of the following statements is incorrect?

a. Prepaid Expense is credited when adjusting entries are made at year end if the company initially used the Asset method in recording the said transaction. b. All adjusting entries contains one nominal and one real account. c. The initial entry when using the liability method involves a credit to deferred revenue account. d. Unused supplies will be shown as Supplies Expense in the income statement for the year.

41. If the adjusting entry for accrual of income was omitted, the effect is:

a. Income is overstated. b. Liability is understated. c. Capital is understated. d. Profit is overstated.

42. The company received an advance payment from a customer amounting to 240,000, representing payments for monthly services to be rendered starting August 1, 2014 up to July 31, 2015. If the company used the liability method in recording the transaction, the adjusting entry on December 31, 2014 is:

a. Debit: Service Revenue, 100,000; Credit: Unearned Revenue, 100,000. b. Debit: Service Revenue, 140,000; Credit: Unearned Revenue, 140,000. c. Debit: Unearned Revenue, 100,000; Credit: Service Revenue, 100,000