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Moving to another question will save this response. Question 34 Which statement is correct? The use of the cash basis of accounting violates both the revenue recognition and matching principles The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received As long as management is ethical, there are no problems with using the cash basis of accounting As long as a company consistently uses the cash basis of accounting generally accepted accounting principles allow its use > Moving to another question will save this response. Question 35 SRC purchased a three-year insurance policy on March 1, 2010 for $7,200. Assuming that SRC debited the prepaid insurance account in recording the original transaction, the adjusting entry on March 31, 2010, the company's yearend, would have included : O Debit to insurance expense for $2.400 O Debit to prepaid insurance for $200 Credit to prepaid insurance for $200 O Credit to insurance expense for $2.400 > Moving to another question will save this response A Moving to another question will save this response. Question 36 Use the following partial bank reconciliation for Pumpkin Inc. to answer the next question $51,800 Balance per Bank Deposits in transit Outstanding checks $50,000 Balance per books 10.00 Interest earned 8,000 Service charge INSF $52,000 Adjusted balance 20 120 Austed balance What would be the net increase in Pumpkin' cash account as a result of the above bank reconciliation? 5140 O 5100 $340 5200