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8) - 8) If a company has an increase in total expenses of $10,000, which of the following is possible? A) Total liabilities decrease by

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8) - 8) If a company has an increase in total expenses of $10,000, which of the following is possible? A) Total liabilities decrease by $10,000. B) Total assets increase by $10,000. C) Total stockholders' equity increases by $10,000. D) Total assets decrease by $10,000. 9) 9) If a company has an increase in total revenues of $10,000, which of the following is possible? A) Total assets increase by $10,000. B) Total liabilities increase by $10,000. C) Total stockholders' equity decreases by $10,000. D) Either b or c is correct. 10) 10) Which of the following causes the accounting equation not to balance? A) Increase assets, increase liabilities B) Decrease assets, increase expenses C) Increase assets, increase dividends D) Decrease liabilities, increase revenues 11) On January 17, Papa's Pizza signs a contract with Bug Zappers for exterminating services related to a recent sighting of cockroaches in the restaurant. Papa's pays for the extermination services on January 29, and Bug Zappers sprays for bugs on February 7. On which date should Papa's Pizza record the extermination expense? A) January 17 (date of the contract). B) January 29 (date of cash payment). C) February 7 (date of extermination service). D) Evenly over the three dates. 12) 12) Refer to question 11. Using cash-basis accounting, on which date should Papa's Pizza record the extermination expense? A) January 17 (date of the contract). B) January 29 (date of cash payment). C) February 7 (date of extermination service). D) Evenly over the three dates. 13) Which of the following is not a characteristic of adjusting entries? A) Reduce the balances of revenue, expense, and dividend accounts to zero. B) Allow for proper recognition of revenues and expenses. C) Are part of accrual-basis accounting. D) Are recorded at the end of the accounting period

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