The trial balance would automatically reveal the

Question 5 of 10
10.0/ 10.0 Points
The trial balance would automatically reveal the following error: Land was purchased for cash but instead
of crediting cash, the credit was made to Accounts Receivable.

A. True
B. False
Answer Key: False
Question 6 of 10
10.0/ 10.0 Points
A company purchased equipment for $1,000; the journal entry to record this purchase is:
Question 7 of 10
10.0/ 10.0 Points
Expense accounts usually have debit balances and show the cost associated with producing revenue
during an accounting period.
Question 8 of 10
10.0/ 10.0 Points
A 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 10
0.0/ 10.0 Points
Assets are recorded at cost for accounting purposes because cost is subjective and market value is
objective.
A. True
B. False
Answer Key: False
Question 10 of 10
10.0/ 10.0 Points
Revenue is the difference between the selling price of a service and the cost of providing such service.