Multiple Choice Questions February, Bota purchased supplies of $300 and used supplies of $400. At the end of February, the balance in the supplies account should be a. $250 debit. b. $350 credit. c. $950 debit. d. $150 debit. 1. At January 31, 2019, the balance in Bota Inc.'s supplies account was $250. During Pro Cla Te 2. Credits a. decrease both assets and liabilities. decrease assets and increase liabilities. increase both assets and liabilities. b. c. d. increase assets and decrease liabilities. 3. The revenue recognition principle dictates that revenue should be recognized in the accounting records a. when cash is received. b. when it is earned. c. at the end of the month. d. in the period that income taxes are paid. 4. Generally accepted accounting principles are a. income tax regulations of the Internal Revenue Service. b. standards that indicate how to report economic events. c. d. principles that have been proven correct by academic researchers theories that are based on physical laws of the universe. A debit is not the normal balance for which account listed below? a. Dividends b. Cash c. Accounts Receivable d. Service Revenue 5. 6. Expenses incurred but not yet paid are called a. prepaid expenses. b. accrued expenses. c. interim expenses. d. unearned expenses