To measure depreciation for a plant asset, all of the following must be known except: A) estimate residual value B) current market value C) historical cost D) estimated useful life E) All of the above must be known to measure depreciation for a plant asset. Cash dividends A) cannot be paid if a net loss is incurred B) must be paid annually regardless of the amount of cash in the bank C) should not be deducted from revenues because they are not directly linked to the generation of revenues or the costs of operating activities D) are distributions of cash to trade creditors E) are expenses like rent and depreciation Kelly Company acquired equipment for $19,000. Kelly Company paid $6,000 in cash, with the balance due on a note. The effect of this transaction on Kelly Company would be to: A) increase the equipment account by $19,000, and increase the notes payable account by $6,000 B) increase the equipment account by $19,000, decrease the cash account by $6,000 and increase the notes payable account by $13,000 C) increase the equipment account by $6,000, decrease the cash account by $6,000, and increase the notes payable account by $13,000 D) increase the equipment account by $6,000, and decrease the cash account by $6,000 E) increase the equipment account by $19,000, decrease the cash account by $6,000, and decrease the notes receivable by $13,000 FL Company purchased a $14,000 van for use in the business. The company made a $5,000 cash down payment, and signed a note for the balance. The effect of this transaction on FL Company would be to: A) increase the van account by $14,000, decrease the cash account by $5,000, and decrease the notes receivable account by $9,000 B) decrease the van account by $5,000, and increase the cash account by $5,000 C) increase the van account by $14,000, decrease the cash account by $5,000, and increase the notes payable account by $9,000 D) increase the van account by $14,000 decrease the cash account by $5,000, and decrease the notes payable account by $9,000 E) increase the van account by $5,000 and decrease the cash account by $5,000 Little House Company received and paid its utility bill of $600. As the accountant, you would tell the bookkeeper to: A) debit Utility Expense and credit Cash for $600 B) debit Cash and credit Retained Earnings for$600 C) debit Cash and credit Utility Expense for $600 D) debit Cash and credit Utility Payable for $600 E) debit Utility Receivable and credit Cash for $600