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15. A company receives $50 million by issuing new shares of stock. It uses the cash received to pay off a long-term promissory note. Which

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15. A company receives $50 million by issuing new shares of stock. It uses the cash received to pay off a long-term promissory note. Which of the following accounts would be used to record these 2 transactions? O A. Cash, Investments and Notes Payable dia B. Common Stock, Investments and Accounts Payable O C. Cash, Common Stock and Accounts Payable O D. Cash, Common Stock and Notes Payable c& 16. Which of the following business events would not be recorded in the accounting records? O A. Signing a contract to rent equipment in the next accounting period. B. Putting down a deposit on a new vehicle. C. Obtaining a bank loan. OD. Receiving a deposit from a customer. 17. Which of the following statements is incorrect? A. The accounting equation must always remain in balance. B. Liability accounts are increased by debit entries and decreased by credit entries. OC. Expense accounts normally have debit balances. O D. Common Stock and Retained Earnings accounts are increased by credit entries and decreased by debit entries. 18. While in the process of posting from the journal to the ledger a company failed to post a $500 credit to Accounts Receivable. The effect of this error will be that A. Accounts Receivable will be understated. B. the error will overstate the debits listed in the journal. OC. the trial balance will not balance. OD. the total credits in the trial balance will be larger than the total debits. 19. Under accrual accounting, revenue is recorded and reported only O A. when cash is received without regard to when the services are rendered. O B. when cash is received at the time services are rendered. C. if cash is received after the services are rendered. O D. when the services are provided without regard to when cash is received

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