MULTIPART QUESTION 5 1. Which of the following typical business transactions is not an example of an Accrual? the purchase of supplies with cash the provision of services on credit wages earned by employees for work already done that will be paid at a later date interest expense on a bond payable that will be paid in the future 1. Which pair of accounts follows the rule of debit and credit in the same manner common stock and rent expense prepaid rent and advertising expense repair expense and notes payable service revenue and equipment 1. Which of the following statements regarding Retained Earnings is correct? The account balance can be a debit Dividends do not affect the account balance since they are not a net income element The account is used by all business forms: sole proprietorship, partnership, and corporations The account balance is only reported on the Retained Earnings Statement 1. Which of the following statements regarding Retained Earnings is not correct? Represents capital of a corporation that can be used to finance growth The balance is equal to the amount, over the life of the company, of total income reduced by total dividends Retained earnings represents the earned capital of a corporation The Retained Earnings account balance shown in the Adjusted Trial Balance is current and up-to-date