8) Which of the following is an asset use transaction? A) Purchased machine for cash. B) Recorded insurance expense at the end of the period. C) Invested cash in an interest earning account. D) Accrued salary expense at the end of the period 9) Which of the following is a claims exchange transaction? A) Recognized revenue earned on a contract where the cash had been collected at an earlier date. B) Issued common stock. C) Invested cash in an interest earning account. D) Purchased machine for cash. 10) Unearned Revenue A) Occurs when a Company has earned a benefit but has not yet been paid. B) Results in an increase in stockholder's equity C) Occurs when a Company receives a benefit from a customer but have not yet earned that benefit. D) Both occurs when a Company has earned a benefit but has not yet been p results in an increase in stockholder's equity. 11) Which of the following statements is true in regard to accrual accounting? A) Revenue is recorded only when cash is received. B) Expenses are recorded when they are incurred. C) Revenue is recorded in the period when it is earned D) Revenue is recorded in the period when it is earned and expenses are recorded when they are incurred. 12) Which of the following accounts would not appear on a balance sheet? A) Service Revenue. B) Salaries Payable. C) Unearned Revenue. D) Neither Service Revenue nor Uneaned Revenue would appear on a balance sheet. 13) If retained earnings decreased during the year, and no dividends were paid, which of the following must be true? A) Expenses for the year exceeded revenues B) The company did not have enough cash to pay its expenses C) Total equity decreased D) Liabilities increased during the year 14) If Ballard Company reported assets of $500 and liabilities of s200, Ballard's sto equity equals: A) S300. B) S500. C) $700. D) Cannot be determined