A Moving to another question will save this response. Question 34 When revenue is earned, what is the effect and the direction of the effect on the balance sheet? increases assets, decreases stockholders' equity decreases assets, increases liabilities increases one asset, decreases another asset increases assets, increases stockholders equity A Moving to another question will save this response. A Moving to another question will save this response. Question 33 Which group of accounts is composed of only assets? Cash, Accounts Payable, Buildings Unearned Revenues. Prepaid Expenses. Cash Accounts Receivable. Revenue, Cash Prepaid Expenses, Buildings. Patents A Moving to another question will save this response. Moving to another question will save this response. Question 32 Prepaid expenses are eventually expected to become expenses in the period when they are paid. become revenues when services are performed. become expenses when their future economic value expires. become revenues when the liability is no longer owed. A Moving to another question will save this response. Moving to another question will save this response. Question 31 A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to increase an asset, increase a liability increase one asset. decrease another asset increase an asset, increase stockholders equity decrease an asset, decrease a liability A Moving to another question will save this response. hp Question 30 Which of the following is an example of a prepaid expense? Accounts Receivable Unearned Subscriptions Unearned Fees Supplies Question 2 of 50 Question 29 2 points As time passes, foxed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of foued assets is systematically located to expense through a process called matching depreciation equipment allocation O accumulation Question 28 Which of the following is not true regarding depreciation? depreciation allocates the cost of a fixed asset over its estimated life. depreciation is computed using the cost of the asset and its useful life. depreciation expense does not measure changes in market value. depreciation expense reflects the decrease in market value each year. Question 27 Which of the following asset accounts is increased when a receivable is collected (the customer pays the amount they owe the company)? Supplies O Cash Accounts Receivable Accounts Payable A Moving to another question will save this response. Question 26 Select the type of business that is most likely to obtain large amounts of resources by issuing stock. partnership proprietorship government entity corporation Question 25 Debts owed by a business are referred to as O accounts receivables expenses liabilities stockholders' equity A Moving to another question will save this response