6) Which of the four major financial statements indicates profitabil a) the income statement b) the balance sheet c) the cash flow statement d) the statement of changes in equity 7) Which statement is true regarding the accounting entries for normal equity transactions? a) revenues are credited; expenses are debited; drawings are debited b) revenues are credited; expenses are credited; drawings are debited c) revenues are debited; expenses are credited; drawings are credited d) revenues are debited; expenses are debited; drawings are credited 8) When making the opening entry in the general journal, the amounts can be transferre directly from; a) the general ledger b) the income statement c) the balance sheet d) source documents 9) When a business purchases goods or services in the course of conducting commercial activity, an entry in the amount of the HST paid is made: a) on the credit side of the HST Recoverable account b) on the debit side of the HST Recoverable account c) on the debit side of the Bank account d) on the credit side of the HST Payable account 10) Which step in the posting process constitutes "proof of posting"? a) Entering the new balance in the account. b) Recording the journal page number in the ledger. c) Entering the amount of the transaction in the ledger. d) Recording the account number in the journal. 11) An adjustment for a late-arriving purchase invoice involves: al a debit to Accounts Payable and a credit it to the appropriate expense account b) a credit to Revenue and a debit to Expense c) a credit to Accounts Payable and a debit to the appropriate expense account