88. Dandridge Company collected cash in 2011 from a customer for services to be performed beginning January 2012. Indicate whether each of the following statements about this transaction is true or...





88. Dandridge Company collected cash in 2011 from a customer for services to be performed beginning January 2012. Indicate whether each of the following statements about this transaction is true or false.



_____ a) Dent's 2011 income statement would not be affected by this transaction.



_____ b) Dent's 2011 statement of cash flows would be affected by this transaction.



_____ c) This transaction is an asset exchange transaction.



_____ d) The revenue for the services provided will be recorded in 2012.



_____ e) This transaction is considered an accrual transaction.



89. Regarding the relationships of revenues and expenses to assets and liabilities, state whether each of the following statements is true or false.



_____ a) Recording an increase in a revenue account may be associated with an increase in assets.



_____ b) Recording an increase in a revenue account may be associated with a decrease in liabilities.



_____ c) An increase in Salaries Expense may be accompanied by a decrease in Salaries Payable.



_____ d) Recording a decrease in assets may be associated with an increase in an expense account.



_____ e) Recording an increase in an expense may be associated with a decrease in a revenue account.







May 15, 2022
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