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Ch. 4 True-falseEvery adjusting entry affects at least one income statement account and one balance sheet account.All calendar years are also fiscal years, but not all fiscal years are calendar years.A fiscal year is any 12 consecutive months, so all calendar years are also fiscal years. Acalendar year, however, must end on December 31, so it does not include fiscal years that end on any date other than December 31 (such as June 30).The accumulated depreciation account is an asset account that shows the amount of depreciationfor the current year only.The Unearned Delivery Fees account is a revenue account.If all of the adjusting entries are not made, the financial statements are incorrect.Ch. 4 Multiple-choiceAn insurance policy premium of USD 1,200 was paid on 2010 September 1, to cover a one-yearperiod from that date. An asset was debited on that date. Adjusting entries are prepared once a year, atyear-end. The necessary adjusting entry at the company’s year-end, 2010 December 31, is:The Supplies on Hand account has a balance of USD 1,500 at year-end. The actual amount ofsupplies on hand at the end of the period was USD 400. The necessary adjusting entry is: