Q:33) When cash is paid before the expense is incurred to generate revenue, costs are stated as: A. Prepaid (asset). B. Payable (liability). C. Receivable (asset). D. Shareholders' equity. Q:34) On the Balance Sheet, inventories are reported as: A. a liability, because goods in inventory are tying up a company's money without earning income. B. an asset, because goods in inventories are owned by the company. C. an expense, because goods in inventory have been paid for but not yet sold. D. a revenue, because goods in inventory will be sold in the future. Q:35) This month, a company performed $517,000 of services and incurred total expenses of $438,000. If the company was paid in cash for all its services and paid cash for all its expenses, these transactions would cause: A. revenues to increase $517,000, expenses to increase $438,000, and retained earnings to decrease $79,000. B. cash increase $517,000, expenses to increase $438,000, and retained earnings to increase $79,000. C. revenues to increase $517,000, expenses to increase $438,000, and cash to increase $79,000. D. revenues to increase $79,000, expenses to increase $438,000, and cash to increase $517,000. Q:36) Customers paid $8,000 on their accounts. Which accounts are affected by this transaction? A. Revenue and retained earnings increase $8,000. B. Cash and revenue increase $8,000. liabilities and expenses increase $8,000. C. Cash increases $8,000 and accounts receivable decreases $8,000. Revenue and retained earnings remain unchanged. D. Revenue and retained earnings decrease $8,000. Q:37) Your company received payment last month for a service that you provided this month. How will the business activity of the current month affect the basic accounting equation? A. Assets will remain unchanged, liabilities will decrease, shareholders' equity will increase. B. Assets and liabilities will increase, shareholders' equity will remain unchanged. C. Assets and shareholders' equity will increase, liabilities will remain unchanged. D. Assets will decrease, liabilities will remain unchanged, shareholders equity will increase. Q:38) Considering the accounting equation, what is the minimum number of accounts that an accounting ransaction could affect? A. One B. Two