please answer 7-11

7. Which of the following is one effect of a purchase of $500 of inventory on credit? (A) It would increase liabilities by S500 (B) It would decrease retained earnings by $500 (C) It would decrease liabilities by $500 (D) It would decrease cash asset by $500 8. A calendar year reporting company preparing its annual financial statements should use the phrase "At December 31, 2009" in the heading of (A) All of the required financial statements it prepares (B) None of the required financial statements it prepares (C) The income statement and balance sheet, but not the statement of cash flows (D) The balance sheet only 9. Which of the following statement is FALSE? (A) The financial statement that shows an entity's economic resources and claims against those resources is the balance sheet (B) Assets are reported on the balance sheet in the order of their liquidity (C) Unearned revenue is reported on the balance sheet as a liability and represents amounts paid to an entity for which the entity has an obligation to provide future services and/or goods (D) When the company sells additional shares of stock in exchange for cash, a company's assets increase and stockholders' equity decrease 10. Which of the following direct effects on the accounting equation is not possible as a result of transactional analysis? (A) An increase in an asset and a decrease in another asset (B) A decrease in a liability and an increase in an asset. (C) A decrease in stockholders' equity and a decrease in an asset. (D) An increase in an asset and an increase in stockholders' equity. (E) All of the above are possible effects on the equation 1. Jack paid S500 to GEICO for car insurance for the next 6 month. The $500 should be recognized as Jack's and GEICO's (A) Prepaid Expense; Unearned Revenue (B) Account Payable; Account Receivable (C) Account Receivable; Account Payable (D) Insurance Expense; Insurance Revenue