7) Which of the following statements is true of expenses? A) Expenses increase equity, so an expense account's normal balance is a credit balance. B) Expenses decrease equity, so an expense account's normal balance is a credit balance. C) Expenses increase equity, so an expense account's normal balance is a debit balance. D) Expenses decrease equity, so an expense account's normal balance is a debit balance. Usoup solod 8) Which of the following is a source document that provides the evidence and data for accounting transactions? A) Journal B) C) Ledger D Trial balance 9) Which of the following sequences is the normal sequence of flow of accounting data? A) Ledger Journal-Source document B) Journal C) Source document Journal Ledger D) Source document Ledger Journal 10) The following are the current month's balances for Jackson Company. Sales invoice Accounts Payable Revenue Cash Expenses Furniture Source document-Ledger A) $24,500 B) $21,750 C) $25,750 D) $33,750 Accounts Receivable B. Jackson, Capital Notes Payable Calculate the total amount of credits for the trial balance. A) comparison B) accrual $8,000 12,000 4,000 1,600 12,000 14,000 9,250 4,500 11) The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the principle. C) matching D) revenue recognition 12) Adjusting entries are needed to correctly measure the A) ending balance in the Cash account B) net income (loss) on the balance sheet C) net income (loss) on the income statement D) beginning balance in the Cash account 21 Pages