5. (TCO E) Which of the following describes the normal balance and classification of the Accumulated Depreciation account? (Points : 3)

Debit, asset Credit, liability Credit, asset Debit, expense

Question 6.6. (TCO F) Which of the following statements is correct? (Points : 3)

Accrual accounting records revenue when earned. Cash-basis accounting records revenue when earned. Accrual accounting records revenue when the payment is received in cash. Cash-basis accounting records expenses when incurred.

Question 7.7. (TCO A) XYZ Company recorded the following events involving a recent merchandise purchase. - Received goods for $50,000, terms 2/10, n/30. - Returned $1,000 of the shipment for credit due to damaged goods. - Paid $1,500 for freight-in. - Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory (Points : 3)

increased by $50,500. increased by 49,500. increased by $49,470. increased by $49,520.