7. Which of the following.statements is correct? The post-closing trial balance contains income and а. expense accounts. b. Income is recorded in the period it is collected regardlesE of when it was earned. c. The expired portion of a prepayment is income. d. Interest is earned or incurred based on passage of time. С.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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7. Which of the following statements is correct?
a. The post-closing trial balance contains income and
expense accounts.
b. Income is recorded in the period it is collected regardless
of when it was earned.
c. The expired portion of a prepayment is income.
С.
d. Interest is earned or incurred based on passage
of time.
Transcribed Image Text:7. Which of the following statements is correct? a. The post-closing trial balance contains income and expense accounts. b. Income is recorded in the period it is collected regardless of when it was earned. c. The expired portion of a prepayment is income. С. d. Interest is earned or incurred based on passage of time.
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