2 Which of the following is true of accrual accounting? c It requires revenue to be increased only when the cash has been received. d It requires salaries to be shown as an expense only when the cash is paid. e It requires utilities expense to be recorded when it becomes an expense, whether or not it has been paid. a It requires a company to increase cash for the amount it expects to receive. b It requires the cash paid for depreciation to be deducted in the period it was paid. 3 Arborvitae, Inc. sold inventory for $14,000, and $10,000 cash was received on this sale and the remaining $4,000 was on accounts receivable. The inventory had originally cost Arborvitae $5,000. How much did the company's assets increase as a result of this sale? a $5,000 b 99,000 c $10,000 d $14,000 e None of the Use the following information to answer questions 4 and 5: 2016 2012 Prepaid rent $6,000 $7,200 Amount paid for rent $44,000 $46,000 Utilities payable $600 5900 Amount paid for utilities $18,000 $17,400 4 How much was rent expense during 2018? - $49,300 6 $46,300 c 48,700 2018 $6,900 S49,000 $1,000 $19,200 2019 $6,500 $50,000 $900 $19,000 d $45,700 e None of the 5 How much was utilities expense during 2017? a $18,000 b $16,500 c $17,100 d $17,400 e None of the