6) Uist Corp. sells $4,250 of goods on account in the current year and collects $2,650 of this. It pays $1,420 of the total expenses recorded during the current year of $2,550. What amount would Uist report on net income under the cash and accrual bases of accounting, respectively? a) $1,600 on the cash basis and $1,130 on the accrual basis b) $1,230 on the cash basis and $1,700 on the accrual basis c) $2,830 on the cash basis and $100 on the accrual basis d) $1,700 on the cash basis and $1,230 on the accrual basis 7) Which of the following statements is correct? a) When money is received from a customer prior to the delivery of goods or the performance of a service, it is recorded as revenue. b) The carrying amount of a depreciable asset is always equal to its actual value because depreciation is a valuation technique. c) A contra asset account is subtracted from a related asset account in the statement of financial position and has a normal credit balance. d) The balances of the Depreciation Expense and the Accumulated Depreciation accounts should always be the same. 8) Which of the following statements about bank reconciliation is correct? a) Deposits in transit should be added to the bank b) Interest earned on the bank account should be added to the bank c) Outstanding cheques should be deducted from the books d) EFT collection on account should be added to the bank 9) The adjusting entry for unearned revenues results in a) an increase to a liability account and a decrease to a revenue account b) a decrease to a liability account and an increase to a revenue account c) neither an increase nor a decrease to a liability account d) neither an increase nor a decrease to a revenue account 10) Some accounts need to be adjusted because a) there are never enough accounts to record all the transactions. b) there are always errors made in recording transactions. c) management can't decide what they want to report. d) they are not up to date at the time financial statements are prepared