1. Amounts owed to a business by customers are:

-liabilities.

-prepaid expenses.

-accounts receivable.

-accounts payable.

2. "The portion of a corporation's net income that is paid out to the stockholders, instead of being retained in the business, is referred to as: "

-gross income.

-income from operations.

-interest expense.

-dividends.

3. "A&M Co. provided services of $1,000,000 to clients on account. How does this transaction affect A&M's accounting records?"

-"Increase accounts receivable and cash by $1,000,000 each"

-"Increase accounts receivable and retained earnings (revenue) by $1,000,000 each"

-"Increase accounts receivable and accounts payable by $1,000,000 each"

-"Increase cash and decrease accounts receivable by $1,000,000 each"

4. "Rush Corporation borrowed $25,000 from the bank. Which of the following accurately shows the effects of the transaction?"

-"Increase cash $25,000 and decrease notes payable $25,000"

-"Increase cash $25,000 and increase notes payable $25,000"

-"Decrease cash $25,000 and decrease notes payable $25,000"

-"Decrease cash $25,000 and increase notes payable $25,000"

5. Which of the following costs is an example of a fixed cost in doing CVP analysis?

-Hourly wages of production workers

-Rent of factory

-Commission paid to sales associates

-Common stock