Question 11 (1 point) Saved 4) Listen A At the end of an accounting period, financial statements need to be adjusted for the following reasons: i) The cash basis of accounting is not an acceptable method for use in financial reporting. ii) All of the answers provided are correct. iii) The timeliness principle, the revenue recognition principle and the matching principle. iv) The accrual basis of accounting is a requirement of GAAP. Prepaid expenses refer to: i) expenses that are incurred immediately when the item is purchased ii) costs paid for in advance of receiving their benefits iii) adjusting entries that debit cash and credit expense when recognized iv) assets that are paid for in cash Question 13 (1 point) Listen An important rule in a double-entry accounting system includes: i) increases in assets are debited to asset accounts, decreases in assets are credited to asset accounts ii) liabilities are always decreased through a debit to equity iii) none of the options are correct iv) equity accounts and liability accounts are always credited, assets are always debited v) increase in equity accounts always result in a decrease to a liability account