136. For a journal entry with only two lines, the following entry is valid: Decrease in Revenue, Increase in Expense.
     1. False B) True

137. ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation?
     1. Increase assets and decrease stockholders' equity.
     2. Increase liabilities and decrease stockholders' equity.
     3. Decrease assets and decrease liabilities.
     4. Decrease assets and decrease stockholders' equity.

138. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of

$100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?

1. Both bonds will sell at a premium. B) Both bonds will sell for the same amount.

C) Bond X will sell for more than Bond Y. D) Bond Y will sell for more than Bond X.

139. Someone who sells milk can report their inventory using LIFO
     1. True B) False

140. Window Dressing is
     1. Legal B) Illegal