Q/2. Signify "True" or "False" as applicable for each of the following items as they pertain to the timing of and reasons for adjusting entries. 2.1. Adjusting entries bring accounting records in compliance with cash basis accounting. a) False b) True 2.2. Adjusting entries focus on transactions that are fully started and completed within one accounting period. a) False b) True 2.3. Adjusting entries primarily affect only the income statement. The effecet of adjusting entries on the balance sheet is typically immaterial. a) False b) True 2.4. Adjusting entries are typically recorded on a daily basis. a) False b) True 2.5. Adjusting entries must be recorded at least as often as financial statements are prepared. a) False b) True Q3. Signify "True" or "False" as applicable for each of the following items as they pertain to depreciation. 3.1. Depreciation measures the decline in market value of the related asset. a) True b) False 3.2. When a depreciable asset is purchased, estimated salvage value is recorded in the general ledger at the time of purchase. a) True b) False 3.3. The useful life of a depreciable asset represents its expected physical life. a) True b) False Focus