92. Indicate whether each of the following statements is true or false.
_____ a) The entry to record the purchase of supplies involves a debit to Supplies Expense and a credit to Cash.
_____ b) The entry to record the amount of supplies used involves a debit to Supplies and a credit to Cash.
_____ c) An asset use transaction may involve a debit to an asset and a credit to a liability.
_____ d) An asset exchange transaction may involve a debit to an asset and a credit to a liability.
_____ e) A claims exchange transaction may involve a debit to a liability and a credit to revenue.
93. Indicate whether each of the following statements is true or false.
_____ a) Accrual accounting requires the recognition of revenues and expenses when cash is received or paid.
_____ b) The adjustment for accrued salaries would involve a debit to Salaries Payable and a credit to Salaries Expense.
_____ c) The purpose of adjusting entries is to clear the balances of the nominal accounts and prepare them for use in the following period.
_____ d) The closing entry for an expense involves a debit to the expense and a credit to Retained Earnings.
_____ e) The closing entry for a revenue involves a debit to the revenue and a credit to Retained Earnings.