1. What would be the appropriate entry for the following transaction? Bill Co. performed $5,200 in consulting services on account (Points : 2) Credit to Cash, Debit to Accounts Receivable Debit to Revenue, Debit to Cash Debit to Accounts Receivable, Credit to Cash Debit to Revenue, Credit to Cash Debit to Accounts Receivable, Credit to Revenue 2. The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services is called the: (Points : 2) Going-concern principle Cost principle Revenue recognition principle Objectivity principle Business entity principle 3. Generally Accepted Accounting Principles: (Points : 2) Focus on the review of a situation Does not require financial statements Never change Intend to make information on the financial statements relevant, reliable and comparable Oversees Security and Exchange Commission 4. If equity is $300,000 and liabilities are $192,000, then assets equal: (Points : 2) $108,000 $192,000 $300,000 $492,000 $792,000 5. Source documents include all of the following except: (Points : 2) Sales tickets Ledgers Checks Purchase orders Bank statements 6. A credit is used to record: (Points : 2) An increase in an expense account An increase in an asset account An increase in an unearned revenue account A decrease in a revenue account A decrease to retained earnings 7. Which of the following elements are found on the income statement? (Points : 2) Cash Accounts Receivable Common Stock Retained Earnings Salaries Expense 8. Technological advancement (Points : 2) Has replaced accounting Has not changed the work that accountants do Has freed accounting professionals to concentrate more on the analysis and interpretation of information In accounting has replaced the need for decision makers In accounting is only available to large corporations 9. If the liabilities of a business increased $75,000 during a period of time and the equity in the business decreased $30,000 during the same period, the assets of the business must have: (Points : 2) Decreased $105,000 Decreased $45,000 Increased $30,000 Increased $45,000 10. Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include: (Points : 2) Assets increase by $75,000 and expenses increase by $75,000 Assets increase by $75,000 and expenses decrease by $75,000 Liabilities increase by $75,000 and expenses decrease by $75,000 Assets decrease by $75,000 and expenses decrease by $75,000 Assets increase by $75,000 and liabilities increase by $75,000