1.) Which of the following costs normally is expensed in the year incurred, regardless of the extent of future benefit?

	a.	Research and development
	b.	Customer lists
	c.	Leasehold improvements
	d.	Technology

2.) Use the following information regarding Larson Company to answer the question below. 1. Established a petty cash fund in the amount of $250. 2. Reimbursed the petty cash fund given the following petty cash fund disbursements: a. Payment for postage, $20. b. Payment for supplies, $70. 3. Increased the petty cash fund to $300. 4. Cash over at the end of the first period was $5. The entry to record the reimbursement of the petty cash fund would include a

	a.	credit to Cash for $85.
	b.	debit to Petty Cash for $90.
	c.	credit to Postage Expense for $20.
	d.	debit to cash for $5.

3.) A promissory note is executed in June. When the note is paid the following January, the payee's entry includes (assuming a calendar-year accounting period and no reversing entries) a

	a.	credit to Interest Receivable.
	b.	debit to Notes Receivable.
	c.	credit to Cash.
	d.	debit to Interest Income.

4.) Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts,

	a.	liabilities increase.
	b.	total assets decrease.
	c.	total assets are unchanged.
	d.	net income is unchanged.

5.) Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:

Salaries expense	$24,000
Social security and Medicare taxes withheld	1,100
Income taxes withheld	5,000
Medical insurance deductions	500
Life insurance deductions	400
Salaries subject to federal and state unemployment taxes of 6.2 percent	8,000

6.) The entry to record the accrual of employer's payroll taxes would include a debit to Payroll Taxes and Benefits Expense for

	a.	$1,596.
	b.	$496.
	c.	$2,496.
	d.	$1,100.

7.) Cielo Corporation had net income of $740,000 in 20x4 and $830,000 in 20x5. Total stockholders