a.) A company makes a cash payment for ads which will run over the next three months. How should this cost be reported?

Select one:

a. As an expenseb. As a dividendc. As a lossd. As an assete. As a liability

b.) Thompson, Inc. incurred cost of goods sold for the year of $2,300. Revenue during the same period was $4,200. Thompson's accountant mistakenly recorded cost of goods sold as $3,200 instead of $2,300. Which of the following is a true statement? Select one: a. Thompson's gross profit would be overstated. b. Thompson's net income would be understated. c. Thompson's retained earnings would be overstated. d. Thompson's reported expenses would be too low. e. Thompson's revenue would be understated.

c.) Which of the following is not true concerning T-accounts? Select one: a. T-accounts have two sides. b. The left side of a T-account is the debit side. c. Each company has one T-account. d. The right side of a T-account is the credit side. e. T-accounts were invented over 500 years ago.

d.) A company purchases inventory on account. Which of the following is true concerning this transaction? Select one: a. Cash will increase b. Inventory will decrease c. Accounts payable will increase d. Cash will decrease e. Accounts payable will decrease

e.) Traylor Beauty Supply is in the business of selling hair care and other beauty supplies. It recently sold an old piece of equipment to Shaw Company for more than Traylor originally paid for it. Traylor should record a _________ on the sale of the equipment: Select one: a. Revenue b. Expense c. Gain d. Loss e. Cost of Goods Sold