Task Team of FUNdaMENTALACCOUNtINg School of Business. Sun Yat-sen University the end of a three-month period C. At the end of January, Garfield Company pays the custodian for January office cleaning services D. On January 1, Garfield Company paid rent for six months on its office building 3. No adjusting entry should consist of A. a debit to an expense and a credit to an asset B. a debit to an expense and a credit to revenue C. Debit to an expense and a credit to a liability D. a debit to a liability and a credit to revenue 4. Adjusting entries are needed A. Whenever revenue is not received in cash B. Whenever expenses are not paid in cash C. Only to correct errors in the initial recording of business transactions D. Whenever transactions affect the revenue or expenses of more than one accounting period 5. Which of the following statements is not true regarding prepaid expenses? A. Prepaid expenses represent assets B. Prepaid expenses are shown in a special section of the income statement C. Prepaid expenses become expenses only as goods or services are used up D Prepaid expenses appear in the balance sheetTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University the end of a three-month period. C. At the end of January, Garfield Company pays the custodian for January office cleaning services. D. On January 1, Garfield Company paid rent for six months on its office building. 3. No adjusting entry should consist of: A. A debit to an expense and a credit to an asset. B. A debit to an expense and a credit to revenue. C. A debit to an expense and a credit to a liability. D. A debit to a liability and a credit to revenue. 4. Adjusting entries are needed: A. Whenever revenue is not received in cash. B. Whenever expenses are not paid in cash. C. Only to correct errors in the initial recording of business transactions. D. Whenever transactions affect the revenue or expenses of more than one accounting period. 5. Which of the following statements is not true regarding prepaid expenses? A. Prepaid expenses represent assets. B. Prepaid expenses are shown in a special section of the income statement. C. Prepaid expenses become expenses only as goods or services are used up. D. Prepaid expenses appear in the balance sheet