9) Prepaid Rent is considered to be a(n):A) liability.B) asset.C) contra-asset.D) expense.10) As Prepaid Rent is used, it becomes a(n):A) liability.B) expense. C) contra-asset.D) contra-revenue.11) If the expired Prepaid Rent for the period is NOT adjusted:A) assets will be overstated and expenses will be overstated. B) assets will be overstated and expenses will be understated.C) assets will be understated and expenses will be overstated.D) revenue will be understated and expenses will be understated. 12) If the Supplies account is NOT adjusted for supplies that are used:A) assets will be overstated and expenses will be understated.B) assets will be overstated and expenses will be overstated.C) assets will be understated and expenses will be overstated.D) assets will be understated and expenses will be understated. 13) When historical cost is used to record equipment, it would appear as the: A) original cost in the Equipment account on the balance sheet.B) residual value in the Stockholders' Equity account.C) residual value in an asset account on the balance sheet.D) original cost on the income statement.14) When original cost is used in the accounting records, the book value of the plant asset is:A) the original cost.B) the market value. C) original cost less accumulated depreciation.D) closed out.15) The cost of an asset less accumulated depreciation equals:A) residual value.B) original cost.C) depreciation expense.D) book value.16) After the adjustment for depreciation has been made, the original cost of the equipment as reported on the balance sheet: A) increases with a credit.B) decreases with a debit. C) remains the same. D) is transferred to a liability.