In a Big Bath, a firm Multiple Choice 48 o changes accounting firms increases Expenses does window dressing O Increases revenue A journal entry has only two lines: a) Increase in a Liability, b) Decrease in Dividends. Multiple Choice a) is a CR and b) is a CR so the entry is NOT valid O a) is a DR and b) is a DR so the entry is NOT valid a) is a CR and b) is a DR so the entry is valid a) is a DR and b) is a CR so the entry is valid How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying employees' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance Multiple Choice 1 3 4 2 After the Third STEP in the Operating Cycle the firm has? Multiple Choice Cash Inventory Account Receivable None of the other three A journal entry has only two lines: a) Decrease in Owners' Equity, b) Increase in an Expense account Multiple Choice a) is a DR and b) is a DR so the entry is NOT valid a) is a CR and b) is a DR so the entry is valid a) is a DR and b) is a CR so the entry is valid a) is a CR and b) is a CR so the entry is NOT valid A journal entry has only two lines: a) Decrease in a liability, b) Decrease in Dividends. Multiple Choice O a) is a CR and b) is a DR so the entry is valid a) is a DR and b) is a DR so the entry is NOT valid a) is a DR and b) is a CR so the entry is valid a) is a CR and b) is a CR so the entry is NOT valid When a magazine sells one-year subscriptions to customers but receives the full amount of cash immediately, it is an example of an) Multiple Choice Deferred revenue Accrued expense O Prepaid expense. Accrued revenue