Question 5 (2 points) How many of the following items would appear in the Financial Statements Net of its own separately computed Tax Effect? Loss from discontinued Operations A Prior Period Adjustment Depreciation Expense Gain from Sale of a Building One TWO Three Four Question 6 (2 points) What is the purpose of this kind of entry: Dr. Supplies XX Cr. Supplies Expense XXX To recognize Supplies Used when purchases of supplies were first recorded in the Supplies account To record the purchase of supplies during or at the end of the period To recognize supplies on hand when the supplies were first recorded in a supplies expense account To close the expense account for supplies at the end of the period Question 7 (2 points) Two partners work very hard in the sun for three years to get their Florida orange farm up and running. Finally in January of year 4 they sell their oranges for a $100,000 profit. According to accounting theory when should this profit be considered Earned and Recognized? Earned over three years while doing the work; Recognized in January Year 4. Recognized over three years while doing the work. Earned in January Year 4. Earned and Recognized over the 3 year period of work. Earned and realized both in January Year 4