Statement 1: Accrued income may be recognized before year-end. Statement 2: Accruals include adjustments to journal entries forgotten by the accountants during the year. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. O Both statements are incorrect. Statement 1: In the Statement of Financial Position, assets which are less liquid are presented first. Statement 2: The income summary account appears on the equity section of the statement of financial position as an addition to the beginning capital. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. O Both statements are incorrect.

Statement 1: Accrued income may be recognized before year-end. Statement 2: Accruals include adjustments to journal entries forgotten by the accountants during the year. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. O Both statements are incorrect. Statement 1: In the Statement of Financial Position, assets which are less liquid are presented first. Statement 2: The income summary account appears on the equity section of the statement of financial position as an addition to the beginning capital. Only Statement 1 is correct. Only Statement 2 is correct. Both statements are correct. O Both statements are incorrect.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PB: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

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