1. Which of the following financial statements presents a company's financial position at a specific point in time? a) Income statement b) Statement of cash flows c) Balance sheet d) Statement of retained earnings 2. Which of the following is an example of an intangible asset? a) Land b) Buildings c) Inventory d) Patents 3. Which of the following is a characteristic of an expense? a) It decreases assets and increases liabilities. b) It increases assets and decreases liabilities. c) It decreases assets and decreases equity. d) It decreases assets and increases equity. 4. Which accounting principle states that revenue should be recognized when it is earned, regardless of when the cash is received? a) Matching principle b) Revenue recognition principle c) Conservatism principle d) Materiality principle