Question : 82. Revenues increase owners’ equity because: A. Revenues increase net income which increases : 1229664

82. Revenues increase owners’ equity because: 
A. Revenues increase net income which increases retained earnings.
B. Revenues are recorded by a credit.
C. Of the matching principle.
D. The realization principle requires revenues be recognized with an increase to owners’ equity.

83. The reason that both expenses and dividends are recorded by debit entries is that: 
A. All dividend and expense transactions involve offsetting credit entries to the Cash account.
B. Both expenses and dividends are offset against revenues in the income statement.
C. Both expenses and dividends reduce owners’ equity.
D. The statement is untrue-expenses are recorded by debits, but dividends are recorded by credits to the owners’ equity account.

84. A journal entry which records revenue must include: 
A. A debit to Cash.
B. A credit to a revenue account.
C. A credit to the owners’ equity account.
D. A debit to the owners’ equity account.

85. A journal entry to record revenue could include each of the following, except: 
A. A credit to a revenue account.
B. A credit to the Capital Stock account.
C. A debit to Cash.
D. A debit to Accounts Receivable.

86. A journal entry to recognize an expense must include: 
A. A credit to Accounts Payable.
B. A credit to an expense account.
C. A credit to Cash.
D. A debit to an expense account.

87. A journal entry to recognize an expense could include each of the following, except: 
A. A debit to an expense account.
B. A credit to Accounts Payable.
C. A debit to a liability account.
D. A credit to Cash.

88. Which of the following accounts normally does not have a debit balance? 
A. Dividends.
B. Wage Expense.
C. Building.
D. Capital Stock.

89. On June 18, Baltic Arena paid $6,600 to Marvin Maintenance, Inc. for cleaning the arena following a monster truck show held on June 9th. This transaction: 
A. Is recorded by debiting the Retained Earnings account.
B. Is recorded by debiting Cash and crediting Cleaning Expense.
C. Causes a decrease in owners’ equity by increasing expenses for June.
D. May not be recorded until all revenue generated from the monster truck show has been collected in cash.

90. Davis, Inc., a music group, entertained at a black-tie dinner dance on April 26, and collected the fee in full at the end of the evening. This transaction: 
A. Causes an increase in assets and revenue, as well as an increase in owners’ equity.
B. Is recorded by debiting Cash and crediting the Retained Earnings account.
C. Causes an increase in assets and a decrease in owners’ equity.
D. Violates the matching principle unless any expenses associated with this cash receipt are paid prior to recording the revenue.

91. At the end of October, Flagship Marina received a bill for fuel used in October. Payment is not due until November 30. This transaction: 
A. Should not be recorded in the accounting records until November.
B. Causes a decrease in assets and in owners’ equity in November, when the bill is paid.
C. Should be recorded as an expense of October, regardless of the payment date.
D. Is recorded as a liability in October, but is not considered an expense until paid.