41. Financial statements can be prepared from the information provided by an adjusted trial balance.
42. The accounts in the adjusted trial balance contain all the data the company needs to prepare its statement of financial position.
43. The total amount of debits on the adjusted trial balance will equal the amount of assets on the statement of financial position.
44. In an adjusted trial balance, all assets and liabilities reported on the statement of financial position are properly stated.
45. Under GAAP revaluation to fair value of items such as land and building is permitted, which is
not
permitted under IFRS.
a46.The adjusting entry at the end of the period to record an expired cost may be differentdepending on whether the cost was initially recorded as an asset or an expense.
a47.Rent received in advance and credited to a rent revenue account which is still unearned at the end of the period, will require an adjusting entry crediting a liability account for the amount still unearned.
48. An adjusting entry requiring a credit to Insurance Expense indicates that the initial transaction was charged to an asset account.
a49.To be faithfully representative, accounting information should predict future events, confirm prior expectations, and be reported on a timely basis.
a50.Consistent use of the same accounting principles and methods is necessary for meaningful analysis of trends within a company.