QUESTION 25 The Income Statement O A. is a theorectical statement OB. is prepared prior to the Statement of Owner's Equity O C. is composed of the revenue and expense accounts D. all of the above QUESTION 26 Receivables are classified as O A. liabilities. O B. revenues. OC. equity. D. assets. QUESTION 27 Purchasing a three-year insurance policy for cash would include a O A. debit to insurance expense and a credit to dividends. B. debit to prepaid insurance and a credit to cash. O C. debit to prepaid insurance and a credit to accounts payable. OD. debit to cash and a credit to accounts receivable. QUESTION 28 The accounting concept which maintains that each organization or section of an organization stands apart from other organizations and individuals is known as the A. separate business entity concept. O B. going-concern concept. O C. revenue principle. OD. stable dollar concept