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Question 4 of 1010.0/ 10.0 PointsWhich of the following is (are) descriptive of an asset?A.It is something of value because it can be used to produce products of the business.B.It has value because it has service potential.C.It is owned and/or under the control of the business.D.(a), (b), and (c) are all correct.Answer Key: DQuestion 5 of 1010.0/ 10.0 PointsA debit to the Dividends account would indicate an increase in expenses.Question 6 of 1010.0/ 10.0 PointsA company purchased office equipment and office supplies on credit from Doug Equipment Company. What is the entry?
Question 7 of 1010.0/ 10.0 PointsIf $500 cash and a $2,000 note are given in exchange for a delivery truck for use in a business:Question 8 of 1010.0/ 10.0 PointsAssets are recorded at cost for accounting purposes because cost is subjective and market value is objective.A. TrueB. FalseAnswer Key: FalseQuestion 9 of 1010.0/ 10.0 PointsThe Office Equipment account normally has a credit balance.Question 10 of 1010.0/ 10.0 PointsA cash expenditure for insurance and utilities would cause assets to increase but stockholders’ equity to decrease.