1. Which of the following accounts would appear in the income statement debit column?

A.

Unearned service revenue

B.

Service revenue

C.

Depreciation expense

D.

Prepaid insurance

2.

Inventory turnover is 8.0. Calculate days in inventory.

	A.	14.5
	B.	2.5
	C.	57.0
	D.	45.6

3.

A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the average-cost inventory costing method, what is the amount of Cost of goods sold on the December 31 income statement?

	A.	$6,750
	B.	$3,750
	C.	$4,000
	D.	$3,500