TRUE/FALSE, write T if the statement is true andF' ir the statement is false. ) Adjusting journal entries are recorded at the end of any period when financial statements are prepared 2) The adjusted trial balance contains only permanent accounts. 3) Prepaid expenses are classified as current assets if the services purchased are 3) expected to expire within 12 months or the operating cycle, whichever is longer 4) The ultimate responsibility for the financial statements lies with the auditors. 5) All current assets are either cash or assets that will be converted into cash or 5) consumed within 12 months or the operating cycle, whichever is longer 6) Intraperiod tax allocation is the process of associating income tax effects with the 6) income statement components that create those effects. 7) Gains, but not losses, from discontinued operations must be separately reported in 7) an income statement 8) Income statements prepared according to both U.S. GAAP and International 8) Financial Reporting Standards require the separate reporting of discontinued operations. 9) Earmings per share disclosure is required only for income from continuing 9) operations 10) The income statement summarizes the operating activity of a firm at a particular 10)-- point in time. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the 11) An example of a contra account is: A) Depreciation expense. C) Accumulated depreciation. B) Sales revenue D) Accounts receivable