1-7. Which of the following statements about the trail balance is NOT true? Debit balances must equal credit balances It includes only assets, liability and equity accounts c) It is useful for detecting errors it is an important step in the accounting cycle. 1-B. An example of a contra asset account is a) Accumulated depreciation b) Depreciation expense e) Discount on Bonds Payable. d) Prepaid expenses 1-9. Which of the following would cause the trial balance to be out of balance? a) an entry recorded with only debits b) an unrecorded entry e) an entry recorded twice d) an entry recorded to the wrong accounts 1-10. Which of the following would most likely be recorded with an adjusting entry a) sales on account b) payment for supplies bought on account c) Wage expense d) Depreciation expense 1-11. Which of the following would be the adjusting journal entry to expense prepaid rent for the period? a) Dr. Prepaid rent, Cr. Rent expense b) Dr. Rent expense, Cr. Cash c) Dr. Prepaid rent, Cr. Cash d) Dr. Rent expense, Cr. Prepaid rent 1-1 2. Revenue is recorded when performance is substantially complete, even if cash has not1 collected, because of the a) revenue recognition criteria. b) cash basis of accounting. c) actual basis of accounting. d) matching concept 1-13. A company borrows $250,000 from the bank on January 1, 2014 at 6% annual inter Interest is to be paid on June 30 each year, starting in 2014. The principal on the loan wi repaid in full on December 31, 2017. At March 31, 2014, the amount of the current inter payable liability on the balance sheet will be a) $250,000. b) $O. c) $3,750 d) $15,000