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increase in its liabilities. Which of the following transactions could have caused that effect? 5) The accounting equation for Long Company shows an increase in

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increase in its liabilities. Which of the following transactions could have caused that effect? 5) The accounting equation for Long Company shows an increase in its assets and an5)B A) Advertising expense for the month was paid in cash. B) Equipment was purchased on credit C) Cash was received from providing services to a customer D) Supplies were purchased for cash. E) Cash was received as a stockholder investment 6) Contessa Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are A) Total assets increase and equity decreases B) Total assets, total liabilities, and total equity are unchanged. C) Both total assets and equity are unchanged and liabilities increase. D) Total assets decrease and equity increases E) Bodh total assets and total liabilities decrease. 7) 7) Operating activities: A) involve using resources to research, develop, purchase, produce, distribute and market products and services. B) Are the means organizations use to pay for resources like land, buildings and equipment. C) Are also called strategic management. D) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. E) Are also called asset management 8) The full disclosure principle: 8) A) Provides guidance on when a company must recognize revenue. B) Prescribes that accounting information is based on actual cost. C) Prescribes that a company report the details behind financial statements that would impact users' decisions. reported continue operating instead of being closed or sold D) Prescribes that a company record the expenses it incurred to generate the revenue E) Means that accounting information reflects a presumption that the business will 9) Technology: 9) A) Has replaced accounting. B) In accounting has replaced the need for decision makers. C) Reduces the time, effort and cost of recordkeeping. D) Has not improved the clerical accuracy of accounting. E) In accounting is only available to large corporations

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