d . decrease assets and decrease liabilities
19 . Which of the following is ( are ) a deficiency ( deficiencies ) of cash−basis accounting ?
a . it omits key revenues and expenses from the balance sheet b . it fails to match revenues and expenses to measure economic performance c . it omits key assets and key liabilities from the balance sheet d .
B and C
20 . On May 1 , Gomez Company paid $ 36,000 for rent . The rent covers the period May 1 through August 31 . Gomez Company recorded Prepaid Rent of $ 36,000 . What is the balance in the Prepaid Rent account on June 1 ?
a . $ 18,000
b . $ 9,000
c . $ 27,000
d . $ 0
21 . Retained earnings are a general claim against ________.
a . stockholders