71. When a company pays cash for equipment, what is the effect on the accounting equation for that company?
    1. Increase assets and increase stockholders' equity.
    2. Decrease assets and decrease liabilities.
    3. No change.
    4. Increase assets and increase liabilities.

Sales revenue	$440,000
Advertising expense	60,000
Interest expense	10,000
Salaries expense	55,000
Utilities expense	25,000
Income tax expense	45,000
Cost of goods sold	180,000

72) What is the gross profit?

A) $180,000. B) $120,000. C) $260,000. D) $220,000.

73. Window Dressing causes which kind of entry
    1. Transaction B) Adjusting C) Closing

74. ABC retires a $40 million bond issue when the carrying value of the bonds is $42 million, but the market value of the bonds is $36 million. The entry to record the retirement will include:
    1. A debit of $6 million to a loss account. B) A credit of $6 million to a gain account.

C) No gain or loss on retirement. D) A credit to cash for $42 million.

75. Which is easier to calculate
    1. A firm's Cash Flow B) A firm's Net Income