4 of 24 Marks If a company's bookkeeper forgets to record the journal entry to accrue interest expense, then: O A net eamings will be understated and liabilities will be overstated. OB. net earnings will be overstated and liabilities will be understated. O c. both net earnings and liabilities will be overstated. OD. both net earnings and liabilities will be understated. Unsure 5 of 24 Marks An advantage to financing the acquisition of assets with debt is that O A interest does not have to be paid until the maturity date. O B. dividends are tax deductible. OC interest is tax deductible. OD. dividends reduce retained earings whereas interest expense does not reduce retained earnings Unsure 6 of 24 2:15:38 Marks Corporations can raise large amounts of money because O A all investments in corporate shares eam money for investors OB. the unlimited liability feature makes corporate ownership attractive to Investors OC shares in public companies can easily be bought and sold by Investors in organized exchange markets OD. corporate earnings are not taxed. Unsure 7 of 24 Marks Which of the following transactions would be reported on the statement of cash flows as an investing activity? O A The issuance of additional common shares OB. The purchase of equipment in exchange for a note payable. OC. The repayment of a long-term note payable. OD. The purchase of investments for cash. O E The increase in accounts receivable due to sales on account Unsure