31.A salary owed to employees is an example of an accrued expense.
32.Depreciation expense for a period is the portion of a plant asset's cost that is allocated to that period.
33.Depreciation measures the decline in market value of an asset.
34.The adjusted trial balance must be prepared before the adjusting entries are made.
35.An unadjusted trial balance is a list of accounts and balances prepared
before
adjustments are recorded.
36.Financial statements can be prepared directly from the information in the adjusted trial balance.
37.Revenue and expense balances are transferred from the adjusted trial balance to the income statement.
38.In preparing statements from the adjusted trial balance, the balance sheet must be prepared first.
39.Income Summary is a temporary account only used for the closing process.
40.Revenue accounts are temporary accounts that should begin each accounting period with zero balances.