Chapter2: Accounting True-False ing Cycle: During the Period F 1. The 'Revenue TF 2. Prepaid rent is an asset. T F 3. Asset accounts inc T F 4. In the balance, hue from Services' account is increased with a credit. ts are increased with a debit. e trial balance, all the accounts with debit balances are listed before the accountsv vendoralzing transactions for entry, source documents for Accounts Payable includ credit balances. F 5. When analyzing invoices and statements Multiple Choice Which of the fol A Analyze transaction, journal, ledger, trial balance, financial statements. B. Analyze transaction, ledger, journal, trial balance, financial statements. C. Analyze transaction, ledger, journal, financial statements, trial balance. D. Analyze transaction, ledger, trial balance, journal, financial statements. E. Journal, ledger, analyze transaction, trial balance, financial statements. 6. lowing gives the correct sequence of accounting procedures? 7. Which of the following does not result in the recording of an expense? A. Receipt of a telephone bill from the phone company. B. Recording of wages for hours worked. C. A new employee is hired at an annual salary of $25,000. D. Receipt of an invoice and a statement for advertising. 8. The journal entry to record completion of a service for which payment has not beet received is A. Revenue xx Revenue Xx Cash xx D. no entry is made until the cash is received. 9. Which of the following types of accounts are increased by a debit? A. revenue. B. expense C. a and b D. none of the above. 10. The journal entry to record incurring an expense that has not been paid for received is A. Expense xx A/P Xx. Expense xx . Cash xx. C. Cash xx E. no entry is made until the cash is paid. 11. The journal entry to record declaration of dividends for which payment has been made is A.Dividends Payable xx Cash xX. B. Cash Dividends Payable xx. C. Dividends Cash D. Dividends Payable xx Dividends xX. For the accounts listed below, indicate if the normal balance of the account is a debit or credit. Normal Balance Debit or Credit Account 12. Service Revenue 13. Rent Expense 14. Accounts receivable 15. Accounts Payable 16. Common Stock