Question 12 (2 points) What is the purpose of adjusting entries ? To correct errors made during the year. To close the books To close nominal account amounts to Retained Earnings To update accounts that have gotten out of date with the passage of time Question 13 (2 points) Which of the following items would NOT appear in the Discontinued Operations section of the Income Statement? A loss on selling a single large building The income earned in the first five months of the year before a major segment business was disposed of. The loss from selling all equipment associated with a major segment that was discontinued during the year The tax effect of the loss from selling a major segment of the business Qrestion 14 (2 points) Which of the following most likely qualifies as a discontinued operation Disposal of a part of a line of business Planned and approved sale of a reporting segment; cash has not yet changed hands B Phasing out of an older product, while continuing other products Costs related to changes in product design