4. Permanent accounts would not include: a. Interest expense b and wages payable. c, Prepaid rent. d. Deferred revenues. 5. The purpose of closing entries is to transfer Accounts receivable to eamings when an account is fully paid b. in accounts to a permanent c. Inventory to cost of goods when merchandise is sold. d. Assets and liabilities when operations are discontinued. 6. When the amount of revenue collected in advance decreases during an accounting period a. Accrual-basis revenues exceed cash collections from b. Accrual-basis net income exceeds cash-basis net income. c. Accrual basis revenues are less than cash collections from customers. d. Accrual basis net income is less than cash-basis net income. 7 when converting an income statement from a cash basis to an accrual basis, which of the following is incorrect? a. An adjustment for depreciation reduces net income. b. A decrease in salaries payable decreases net income. c. A reduction in prepaid expenses decreases net income. d. An increase in accrued payables decreases net income. Use the following to answer questions 8-11 Listed below are year-end account balances (in Smillions) taken from the records of Symphony Stores. Debit credit Accounts receivable-trade 730 Building and equipment Cash-checking 34 Interest receivable 30 Inventory 50 Notes receivable (ong-term) 450 Petty cash fund Prepaid rent Supplies Trademark Accounts payable-trade Accumulated depreciation Additional paid in capital Allowance for uncollectible accounts 485 Cash dividends payable 20 Common stock, at par 30