#1 Dependent upon the industry in which a service business operates - and dependent upon the purpose of the financial statement itself - service businesses may present the costs to deliver services to their clients on their income statements by means of a line item called:

A) cost of goods sold, cost of services, cost of revenue or cost of sales

B) cost of returns or cost of allowances

C) cost of goods sold or cost of services

D) cost of services, cost of revenue or cost of sales

#2 ___________is the cumulative amount shareholders paid for the common stock of a company beyond its par value.

A) Deferred capital

B) Paid-in capital in excess of par

C) Preferred capital

D) Provision for capital

#3 If net income for 2019 was $316,000, owner's equity as of 12/31/18 was $185,000, distributions during 2019 were $155,000, and the amount of equity investment during 2019 was $215,000, owner's equity as of 12/31/19 for Airborne Enterprises, LLC was:

A) $871,000

B) $716,000

C) $346,000

D) $561,000

#4 Short-term portion of long-term debt:

A) is due to be paid within the next 30 days

B) represents a portion of the principal of one or more major long-term borrowings (e.g., a mortgage payable)

C) is a fabricated term (it doesn't exist)

D) belongs on the income statement