8. If a company is highly leveraged, this means that it has relatively high risk of not being able to repay its debt.truefalse9.At a given point in time, a business’s trial balance is a list of all of its general ledger accounts and their balances.truefalse10.Paul’s Landscaping purchased $500 of office supplies on credit. The company’s policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will Paul’s Landscaping make to record this transaction?Debit Office supplies, $500; credit Accounts payable, $500.Debit Office supplies expense, $500; credit Cash, $500.Debit Office supplies, $500; credit Cash, $500.Debit Cash, $500; credit Office supplies, $500.Debit Accounts payable, $500; credit Office supplies, $500.11.Identify the account below that is classified as a liability in a company’s chart of accounts:SalariesExpenseSuppliesCashUnearned RevenueAccounts Receivable12.The accounting equation implies that: Assets + Liabilities = Equity.truefalse14.The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.truefalse
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