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Question 5 of 1010.0/ 10.0 PointsThe trial balance would automatically reveal the following error: Land was purchased for cash but insteadof crediting cash, the credit was made to Accounts Receivable.
A. TrueB. FalseAnswer Key: FalseQuestion 6 of 1010.0/ 10.0 PointsA company purchased equipment for $1,000; the journal entry to record this purchase is:Question 7 of 1010.0/ 10.0 PointsExpense accounts usually have debit balances and show the cost associated with producing revenue during an accounting period.Question 8 of 1010.0/ 10.0 PointsA purchase of an asset for immediate consumption that will not be paid for until next month would cause liabilities to increase and stockholders’ equity to decrease this month.
Question 9 of 100.0/ 10.0 PointsAssets are recorded at cost for accounting purposes because cost is subjective and market value is objective.A. TrueB. FalseAnswer Key: FalseQuestion 10 of 1010.0/ 10.0 PointsRevenue is the difference between the selling price of a service and the cost of providing such service.