A) Both revenues and expenses typically have credit balances.
B) Revenues and expenses are considered assets and liabilities,respectively.
C) Revenue is the same as cash.
D) Expenses decrease the amount of stockholders' equity.
F) B) and C)
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A) Receiving contributions from investors.
B) Earning unearned revenue.
C) Billing customers for services provided.
D) Using up supplies.
F) All of the above
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A) Using supplies.
B) Paying off an account payable.
C) Paying for electricity used by production equipment during the current period.
D) Paying daily wages for production workers.
F) B) and C)
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A) Paying off a loan to the bank.
B) Receiving cash from customers for services rendered.
C) Paying employees for work completed.
D) Billing customers for services rendered but not yet paid for.
F) C) and D)
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A) credit to accounts payable.
B) credit to utilities expense.
C) debit to utilities revenue.
D) debit to cash.
F) A) and C)
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A) If payment is received at the same time a service is produced and sold,there is no difference between how cash and accrual accounting record the transaction.
B) The cash basis of accounting works best when a lengthy delay exists between the timing of cash flows and the underlying business activities to which they relate.
C) If a company receives a bill for rent for the period and decides to delay payment,the rent will not be recorded as an expense according to the accrual model of accounting.
D) The cash basis of accounting would record unearned revenue if a company received a deposit in advance of services to be rendered by the company.
F) All of the above
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A) According to the revenue principle,a company should not record the revenue from a transaction until it is actually received in cash.
B) Expenses are recorded when the company uses goods or services.
C) The Expense Recognition (Matching) principle requires that expenses be determined first and then revenues be "matched" to those expenses.
D) The revenue and expense accounts on the income statement continue to have an impact beyond the current period,whereas balance sheet items report the financial impact in just the current period.
F) A) and B)
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A) $46,116
B) $41,516
C) $1,416
D) $46,916
F) B) and C)
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A) When delivery has occurred or services have been provided (rendered) .
B) When the price is fixed or determinable.
C) When there is persuasive evidence of an arrangement for customer payment and collection is reasonably assured.
D) When cash has been received for services rendered.
F) All of the above
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A) It increases both assets and liabilities by $1.2 million.
B) It increases assets and decreases stockholders' equity by $1.2 million each.
C) It does not affect the balance sheet.
D) It increases liabilities and decreases stockholders' equity by $1.2 million each.
F) B) and C)
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A) A trial balance is included in the full set of external financial statements,just like an income statement.
B) If debits equal credits in the unadjusted trial balance,you have made no errors in preparing and posting journal entries.
C) The balances for each account reported on an unadjusted trial balance are determined by adding the amounts on the "+" side and subtracting the amounts on the "-" side of each ledger or T-account.
D) GAAP allows companies to choose between the cash basis or the accrual basis of accounting.
F) A) and C)
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A) Amounts received from customers for services performed in the current month would be revenues on the income statement.
B) Costs incurred in the current month but not paid as of the end of the month would be expenses on the income statement for the current month.
C) Amounts received from customers in payment of their accounts arising from service in the prior period would be revenues in the income statement for the current period.
D) Amounts received from customer as deposits for services to be rendered next month will not be recorded as revenues on the income statement for the current month.
F) B) and C)
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A) Income Tax Expense.
B) Sales Revenue.
C) Unearned Revenue.
D) Net Income.
F) B) and D)
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A) 
B) 
C) 
D) 
F) A) and D)
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B) False
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A) Option A
B) Option B
C) Option C
D) Option D
F) B) and D)
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B) False
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A) the revenues in November and the expenses in September.
B) the revenues and the expenses in September.
C) the revenues and the expenses in November.
D) the revenues in September and the expenses in August.
F) A) and C)
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A) A trial balance is an internal report used to determine whether total debits equal total credits.
B) A trial balance lists every account name in one column,usually in the order of assets,liabilities,stockholders' equity,revenues and expenses.
C) A trial balance shows the ending balances obtained from the ledger listed in either the debit or credit column.
D) If debits equal credits in the unadjusted trial balance,it means that no errors were made in the recording of transactions.
F) A) and B)
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B) False
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