Insert the appropriate letter into the correct blank to describe the type of adjustment required at the end of April and the effect it has on expenses or revenues and assets or liabilities. Adjustment type A. Accrual D. Deferral Effect on Account E. Revenue rises and asset rises. F. Expense rises and asset falls. G. Revenue rises and liability falls. H. Expense rises and liability rises. Adjustment Effect on Type Account 1. The Grass is Greener Company has $8,300 in prepaid rent at the beginning of April and uses $3,600 of that for its April rent. 2. The Grass is Greener Company provides lawn care in April for customers who will be billed and will pay in May 3. The Grass is Greener Company owes interest on loans for the month of April and will not pay this interest until May 4. The Grass is Greener Company uses $1,600 worth of Fertilizer from its stock of supplies. 5. The Grass is Greener Company provides lawn care in April for customers who paid in March Notes to the financial statements (also known as footnotes) immediately follow the four individual financial statements, and include descriptions of accounting decisions made when preparing the financial statements. True or False True False Closing entries: Multiple Choice O summarize the activity in every account. O reduce the number of permanent accounts. cause the revenue and expense accounts to have zero balances. are prepared before financial statements are prepared. A transaction can cause only one account on the balance sheet to change. True or False True False HCP save or Exit Submit A contra account is added to the account it offsets. True or False True False The Buddy Burger Corporation owes $1.5 million to the Alberta Wholesale Meat Company from whom Buddy Burger buys its burger meat. Which account would Buddy Burger use to report the amount owed? Multiple Choice Accounts Payable Deferred Revenue Supplies Accounts Receivable