1) Husky Companys revenue for March is $75,000, but only $15,000 cash is collected. Expenses for March are $41,000, of which $28,000 is paid in cash. During March, additional capital stock is issued in exchange for $5,000 cash. Using the accrual basis of accounting, Husky Companys income statement for March reports

2) The adjusting entry to recognize interest owed by Tiger, Inc., to the bank for May was omitted in month-end procedures. As a result of this error, Tigers:

a. May net income is understated and May 31 liabilities overstated.

b. May expenses are overstated and May 31 assets overstated.

c. May expenses are understated and May 31 owners equity understated.

d. May net income is overstated and May 31 liabilities overstated.

e. none of the above

3) Net income of Mustang Company was $60,000 before any year-end adjusting entries were made. The following adjustments are necessary: portion of fees collected in advance now earned, $3,400; interest accrued on a company savings account, $330; portion of insurance expiring, $500. Net income reported on the income statement for the current year should be

4) Sunset Company sells land for cash at a price in excess of its cost. Which of the following is true as a result of this transaction?

a. Cash is decreased.

b. Decreases total liabilities.

c. Total assets are unchanged.

d. Owners equity is decreased.

e. none of the above