1 What is the general timing of the income statement?

A snapshot in time.

The timing depends on the liquidity of the company.

It doesnt cover a specific amount of time.

A period of time generally not to exceed 12 months.

2 What is the balance sheet trying to communicate?

The historical value of the debt the company has taken on.

What the company has, what the company owes, and the ownership contributions.

The revenue produced by the company.

The overall market value of the company.

3 What is the general timing of the balance sheet?

The timing depends on the liquidity of the company.

A period of time generally not to exceed 12 months.

A snapshot in time.

It covers a specific amount of time, established by the SEC.

4 Generally speaking, under accrual accounting when does a company record revenue?

When the company delivers the product to the customer and believes the customer will pay.

When the company receives the order from the customer and the company believes the customer will pay.

When the company is building the product for the customer.

When the customer pays the company.

5. The matching principle requires that:

Expenses are recorded in the period cash is paid, revenues are recorded in the period in which it is earned

Expenses and revenues are recorded in the period in which cash is received Expenses are recorded in the period they are incurred, revenues are recorded in the period cash is received

Expenses are recorded in the period they are incurred, revenues are recorded in the period cash is received

Expenses are recorded in the same period as the revenues that they helped generate

6. When do the Income Statement account balances reset to zero?

Depends on the dates listed on the income statement and the balance sheet.

They do not reset to zero.

Depends on the industry the company operates in.

At the start of the companys new fiscal (business) year.

7 When do the Balance Sheet account balances reset to zero?

They do not reset to zero.

At the start of the companys new fiscal (business) year.

Depends on the dates listed on the income statement and the balance sheet.

Depends on the industry the company operates in.

8. Which below is the acronym of our regulator?

S.E.C.

U.S. GAAP

IFRS

FASB

9.

Which below is the acronym of our standard setters (rule writers)?

IFRS

S.E.C.

U.S. GAAP

FASB

10.

If an accrual based company has $300,000 in Revenue, $180,000 in COGS, $20,000 in SG&A, $45,000 in Inventory..how much cash do they have?

$120,000

Cant answer with the data given.

$100,000

$55,000