Which of the following statements is true?

Select one:

a. We can only find the opening balance of Capital on the 10-column worksheet when there is no owners drawings.

b. We can only find the opening balance of Capital on the 10-column worksheet when there is no owners contribution.

c. We can always find the opening balance of Capital on the 10-column worksheet.

d. We can never find the opening balance of Capital on the 10-column worksheet.

Using accrual accounting, expenses are recorded and reported only

Select one:

a. when they are incurred whether or not cash is paid.

b. if they are paid before they are incurred.

c. when they are incurred and paid at the same time.

d. if they are paid after they are incurred.

An adjusting entry:

Select one:

a. affects a balance sheet and an income statement account.

b. affects Cash at bank account.

c. affects an income statement account.

d. affects two balance sheet accounts.

When rent is incurred in one period and paid in the next period, this leads to which of the following accounts appearing in the statement of financial position?

Select one:

a. Rent payable

b. Prepaid rent

c. Rent receivable

d. Rent expense

An expense incurred:

Select one:

a. increases equity

b. decreases assets and liabilities

c. increases assets and liabilities

d. decreases equity

A credit to a liability account:

Select one:

a. indicates an increase in the amount available to the owners.

b. indicates an increase in the amount of expenses.

c. indicates a decrease in the amount of assets.

d. indicates an increase in the amount owed to creditors.