A100%2BFall+1%2C+2011

A recording a utility invoice for this period that

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Unformatted text preview: nally purchased b Purchasing insurance for the next six months c Recording depreciation on equipment d Collecting an accounts receivable e Receiving unearned revenue 19 Which of the following decreases stockholders' equity? a Recording a utility invoice for this period that will be paid next year b Purchasing inventory on account c Receiving unearned revenue d Issuing and selling more of the company's common stock e Purchasing insurance for the next six months 20 The bookkeeper for your company made a mistake and forgot to accrue interest expense at the end of the year. This mistake would cause which of the following in the financial statements? a Assets are overstated and expenses are understated. b Liabilities are overstated and retained earnings are understated. c Both liabilities and net income are overstated. d Liabilities are understated and net income is overstated. e Both assets and liabilities are understated. 21 Which of the following is true regarding unearned revenue? a Liabilities are reduced when the un...
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