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6) On November 1, 2016, a company using accrual accounting, pays $720,000 for a television advertising campaign. Commercials will run evenly over six months beginning on November 1, 2016. How much Advertising Expense will be reported on an income statement prepared for the year ended December 31, 2017? A) $480,000 B) $360,000 C) $720,000 D) $240,000 7). will not be found on the statement of retained earnings. A) Net loss B) Dividends C) Net income D) Stockholders' equity 1 8) A doctor performed surgery in March and did not receive cash from the patient until July. Under accrual accounting, the doctor recognizes revenue: A) in July B) in March. C) in either March or July. D) at a time that cannot be determined from the facts. 9) Cash dividends: A) increase expenses on the income statement. B) decrease retained earnings on the statement of retained earnings. C) decrease operating activities on the statement of cash flows. D) decrease revenue on the income statement. 10) When an expense account is increased: A) an amount is entered on the debit side of the expense account. B) stockholders' equity is not affected. C) an amount is entered on the credit side of the expense account. D) cash must always be credited