Question 2 (2.5 points) Saved On November 1, Jones Company received four months' rent in advance and properly credited an Unearned Rent Revenue account. Failure to make the proper adjusting entry on December 31 would result in Overstated assets Understated assets Overstated revenue Overstated liabilities Question 5 (2.5 points) For 2016, Potter Company reported sales of $3,600,000, cost of goods sold of $2,000,000, and a gross profit of $1,600,000. Potter's inventory at January 1, 2016 was $580,000; the inventory at December 31, 2016 was $620,000. Potter's 2016 inventory turnover is: 3.33 3.22 2.08 3.44 Question 6 (2.5 points) Current assets are defined as assets that will be used up or converted to cash within one year, unless The company's operating cycle is the same as its financing cycle The company's operating cycle is less than a year The company's operating cycle is longer than its financing cycle The company's operating cycle exceeds a year