1. The revenue recognition principle requires that a business record revenue when the business: A. receives an order from a customer for goods or services. B. prepares the invoice (bill) for goods or services c. delivers goods or services to a customer. D. receives payment from a customer for goods or services 2. O'Connor Company purchased supplies totaling $16,800. By year end, $4,700 of supplies were still on hand. How much supplies expense should o Connor recognize? A. $4,700 B. $12,100 C. $16,800 D. $0 3. In what order are financial statements generally prepared? A. Balance sheet, statement of stockholders' equity, and B. Income statement, statement of stockholders' equity, and C. Income statement, balance sheet, and statement of D. Statement of stockholders' equity, income statement, and income statement balance sheet stockholders' equity balance sheet 4. An expense incurred in 2017 is not paid until 2018. Using the accrual basis of accounting, the expense should appear on A. the 2018 income statement. B. the 2017 income statement c. neither the 2017 nor the 2018 income statement. D. both the 2017 and 2018 income statements