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Question 5 of 10 10.0/ 10.0 PointsThe 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. TrueB. FalseAnswer Key: FalseQuestion 6 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.Question 7 of 10 10.0/ 10.0 PointsThe primary function of the general ledger is to store transactions by account classification and to provide a balance of each account.Question 8 of 10 10.0/ 10.0 PointsLiabilities represent claims against the company’s assets and may be in the form of accounts payable or notes payable.Question 9 of 10 10.0/ 10.0 PointsEven though an expense is recognized on the income statement, it may not require an equivalent outlay of cash in the same period.A. TrueB. FalseAnswer Key: TrueQuestion 10 of 10 10.0/ 10.0 PointsExpenses for an accounting period are: