Question 7 1 Point Statement I. Adjusting Entries are needed to reflect in the accounts information the economic activities that have occurred but have not yet been recorded. Statement II. Adjusting Entries are needed to properly measure the profit for the period, and to bring related asset and liability accounts to normal balances for the financial statements. Both Statements are TRUE Both Statements are FALSE Only Statement I is TRUE Only Statement II is TRUE Question 8 1 Point Upon receipt of full payment from a customer of their three years prepayments of advertisement, the company recorded the transaction with a credit to an unearned advertising fee. At the end of the year, the adjusting entry for the said transaction will include, A a debit to an unearned advertising fee for an amount equal to the unearned portion a debit to unearned advertising fee for an amount equal to the earned portion (C) a credit to an advertising revenue for the whole amount received a credit to unearned advertising fee for an amount equal to the earned portion Question 9 1 Point At the end of the accounting period, MQA Company failed to record accrued rent revenue. As a result, the current period's assets, liabilities, equity and net income would be overstated, correct, understated and overstated, respectively. B overstated, understated, understated and understated, respectively. understated, correct, understated and understated, respectively. understated, correct, overstated and understated, respectively. Question 10 Failure to recognize the consumption of prepaid expenses will A overstate net income and asset B overstate capital and understate liability Coverstate net income and understate asset not affect lability but overstate expenses 1 Point Question 11 Which of the following statements is/are? Statement: All adjusting entries involve one entry to a real account and one entry to a nominal account. 1Point Statement II: The difference between accrued revenues and unearned revenues is that accrued revenues are earned before cash is received while unearned revenues are earned after cash is received. A only Bonly Candi (D) Neither Inor II Question 12 1 Point Statement. Nominal accounts are temporary accounts that accumulate information related to a specific accounting period Statement II: Real accounts are permanent accounts that show information related to a specific point in the accounting period. A Both Statements are TRUE (B) Both Statements are FALSE Only Statement is TRUE (D) OnlyStatements TRUE