The two primary qualities that make accounting

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9. The two primary qualities that make accounting information useful for decision making are a. Comparability and consistency b. Materiality and timeliness c. Relevance and reliability d. Reliability and comparability 10. Financial information exhibits the characteristics of consistency when 11. Except for the respective Contra Accounts, liability and stockholders’ equity accounts are increased on the credit side and decreased on the debit side. True 12. The book value of any depreciable asset is the difference between its cost and its salvage value. False: The book value of any depreciable asset is the difference between its cost and its related accumulated depreciation. 13. Mune Company recorded journal entries for the payment of $50,000 of dividends, the $32,000 increase in accounts receivable for services rendered, and the purchase of equipment for $21,000. What net effect do these entries have Owners Equity?
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14. Tate Company purchased equipment on November 1, 2007 and gave a 3 month 9% note with a face value of $20,000. The December 31, 2007 adjusting entry is 15. Big-Mouth Frog Corporation had revenues of $200,000, expenses of $120,000, and dividends of $30,000. When Income Summary is closed to Retained Earnings, the amount of the debit or credit to Retained Earnings is a a. Debit of $50,000 b. Debit of $80,000 c. Credit of $50,000 d. Credit of $80,000
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