6 Which of the following statements is true? Accumulated depreciation is always higher than depreciation expense. It is possible to have a recorded value for accumulated depreciation while depreciation expense it still "zero". Bad debts expense and allowance for bad debts will always be equal. All of the statements are false Question 7 Which of the following statements about prepaid insurance is true? Prepaid insurance is debited by the client when cash is paid in advance to the insurance company. B Insurance expense will be credited when a portion of the insurance has already expired. The adjusting entry in relation to insurance will decrease equity, and will decrease assets. All of the statements are true. Question 8 Which of the following statements about accruals is false? Will increase the values of all the accounts recorded. Neither a receivable nor a payable will be recorded. Entry will either increase or decrease income. All of the statements are true. Question 9 An adjusting entry in relation to unearned revenues will: increase total liabilities. (B) increase total equity. (c) decrease total assets. (D) have no effect on income. Question 10 An adjusting entry in relation to estimates will always: increase total expenses. B decrease total equity. C decrease net assets All of the following statements are false. 2 Points 2 Points 2 Points 2 Points 2 Points