5. Which one of the following accounts does not increase with debits?a) Expensesb) Dividends Declaredc) Assetsd) Sales revenue6. Which of the following entries is necessary to close the temporary accounts at theyear end?a) Close all revenue and expense accounts to the Income Summary account.b) Close the lncome Summary account to Retained Earnings.c) Close the Dividends Declared account to Retained Earnings.d) all of the above7.Sports Magazine sells 1-year subscriptions for their magazines. The cash for thefull year subscription is collected at the beginning of each year. Revenue shouldbe recognizeda) at the time each magazine is shippedb) at the end of the subscription.c) at the beginning of the subscription, when the cash is collected,d) any of these alternatives is acceptable8.Anderson Ltd. revealed the following information for the years ending December31, 201g and 2020;Current AssetsCashAccounts ReceivableInventoryPrepaid expensesTotal Current AssetsCurrent LiabilitiesNet Credit Sales20202019$3,00049,500375,000800$428,300$280,000$480,000$3,35059,800333,250800$397,200$245,000$451,000Anderson's credit terms are net 30 days. On the average Anderson has been collectingits accounts receivablea) within the 30 days required by its credit termsb) after the 30 days has passedC) within the discount period of 10 days

1.The sale of merchandise to a customer partly for cash and partly on account would require which of the following? a) increase in Accounts Receivable, increase in Cash, increase in Sales Revenue b) increase in Cash, decrease in Accounts Payable, increase in Sales Revenue 0) increase in Cash, increase in Sales Revenue 0) decrease in Accounts Payable, increase in Accounts Receivable, increase in Sales Revenue 2.At December 31 st, 2020, the end of the company's scal year, the accountant for Stanley Company Limited counted inventory in the warehouse and determined that it had cost the company $50,000. At the beginning of the year, the company had inventory for resale costing $35,000 and during the year it had purchased more inventory for sale, at a cost of $275,000. What was the company's cost of goods sold expense for the year? a)$190000 b)$240000 0) $250,000 d)$360000 3.Cost of goods sold should be related to the revenue it generated on each year's income statement because of the a) revenue recognition criteria. b) cash basis of accounting. 0) accrual basis of accounting. d) matching concept. 4.0n October 1, 2020, Oscar Company paid $1,800 cash for a one-year insurance policy on a truck used in the business for making deliveries. The insurance policy will be effective until September 30th, 2021. At December 31 st, 2020, the prepaid asset related to this insurance policy will be a) $1,800. b) $1,350. 0) $450. at) $800