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					1. Which of the following is not a condition for reporting revenue?
      Answer

           The goods or services have been delivered.
           The customer has already paid for the good or service.
           The price is fixed or determinable.
           Collection is reasonably assured.

                                                                            10 points


     Question 2
1.
      Which of the following trial balances is used as the source for preparing
      the financial statements?
      Answer

           Unadjusted trial balance
           Pre-adjusted trial balance
           Adjusted trial balance.
           Post-closing trial balance.

                                                                            10 points


     Question 3
1.
      At the end of the accounting period:
      Answer

           all accounts are closed.
           temporary accounts are closed; permanent accounts are not.
           permanent accounts are closed; temporary accounts are not.
           only accounts with a credit balance are closed.

                                                                            10 points


     Question 4
1.
      Company A receives $10,000 in advance this month for work to be
      performed next month. This month, the company should:
      Answer
           Debit Cash $10,000 and credit Service Revenue $10,000.
           Debit Cash $10,000 and credit Unearned Revenue $10,000.
           Debit Cash $10,000 and credit Accounts Payable $10,000.
           Debit Accounts Payable $10,000 and credit Cash $10,000.

                                                                           10 points


     Question 5
1.
      Which of the following accounts would normally never be affected by an
      adjustment?
      Answer

           Supplies
           Revenues
           Expenses
           Cash

                                                                           10 points


     Question 6
1.
      Sparkling Pools received a bill for $1,200 for running newspaper ads during
      the last two weeks of July; the bill will be paid on August 1. Advertising
      expense should be:
      Answer

           credited for $1,200 in July.
           credited for $1,200 in August.
           debited for $1,200 in July.
           debited for $1,200 in August.

                                                                           10 points


     Question 7
1.
      The Don't Tread on Me Tire Company had retained earnings at December 31,
      2010 of $200,000. During 2011, the company had revenues of $400,000
      and expenses of $350,000, and the company declared and paid dividends of
      $11,000. Retained earnings on the balance sheet as of December 31, 2011
      will be:
      Answer

           $39,000
           $239,000
           $250,000
           $289,000

                                                                            10 points


     Question 8
1.
      If all steps in the closing process have been performed correctly, which of
      the following accounts will be reflected with zero balances?
      Answer

           Revenue
           Dividend
           Expense
           All of the above

                                                                            10 points


     Question 9
1.
      In December 2010, Asler, Inc. performs consulting services. The client does
      not pay Asler until January, 2011.
      Answer

           Under the accrual basis the revenue is reported for January 2011.
           Under the cash basis the revenue is reported for December 2010.
           Under the accrual basis the revenue is reported for December 2010.
           Under the accrual basis the revenue is reported when Asler's expenses
           are paid.

                                                                            10 points


     Question 10
1.
      The cash account had a beginning balance of $68,900. During the month the
      account was credited $16,000 and debited $18,300. At the end of the
      month, the balance in the cash account is
      Answer
a debit balance of $2,300.
a credit balance of $2,300.
a debit balance of $71,200.
a credit balance of $66,600.

				
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