1. The underlying assumption that presumes a company will continue indefinitely is:

a. Periodicity.

b. Going concern.

c. Economic entity.

d. Monetary unit.

2. in general, revenue is recognized when the earnings process is virtually complete and:

a. Goods or services are transferred to the customer.

b. A purchase order is received.

c. Cash is collected.

d. Production is completed.

3. The primary objective of matching is to:

a. Provide timely information to external decision-makers.

b. Provide full disclosure.

c. Recognize expenses in the same period as the related revenue.

d. All of the above.

4.

Land was acquired in 2016 for a future building site at a cost of $41,000. The assessed valuation for tax purposes is $27,300, a qualified appraiser placed its value at $49,000, and a recent firm offer for the land was for a cash payment of $45,000. The land should be reported in the financial statements at:

a. $ 45,000.

b. $ 41,000.

c. $ 49,000.

d. $ 27,300.

6.

On December 31, 2016, the end of Larry's Used Cars' first year of operations, the accounts receivable was $54,400. The company estimates that $1,300 of the year-end receivables will not be collected. Accounts receivable in the 2016 balance sheet will be valued at:

a. $53,100.

b. $55,700.

c. $1,300.

d. $54,400.