1. Which of the following is not part of the recording process? a) Analyzing transactions. b) Preparing a trial balance. c) Entering transactions in a journal. 2. Adjustments for prepaid expenses: a) decrease assets and increase revenues. b) decrease expenses and increase assets. c) decrease assets and increase expenses. d) decrease revenues and increase assets. 3. Which types of accounts will appear in the post-closing trial balance? a) Permanent (real) accounts. b) Temporary (nominal) accounts. c) Accounts shown in the income statement columns of a work sheet. d) None of the above. 4. Blue Company on July 15 sells merchandise on account to Cherry Co. for OMR 1,000, terms 2/10, n/30. On July 20, Cherry Co. returns merchandise worth OMR 300 to Blue Company. On July 24, payment is received from Cherry Co. for the balance due. What is the amount of cash received? a) OMR 700. b) OMR 680. c) OMR 686 d) None of the above 5. A single-step income statement: a) reports gross profit. b) does not report cost of goods sold. c) reports sales revenues and "Other revenues and gains" in the revenues section of the income statement d) reports operating income separately. 6. Which of the following should not be included in the physical inventory of a company? a) Goods held on consignment from another company b) Goods shipped on consignment to another company. c) Goods in transit from another company shipped FOB shipping point. d) None of the above. 7. Accounts and notes receivable are reported in the current assets section of the balance sheet at: a) cash (net) realizable value by net book value lower-of-cost-or-market value invoice cost 8. The purchase of supplies on account should result in: a) a debit to Supplies Expense and a credit to Cash. b) a debit to Supplies Expense and a credit to Accounts Payable. c) a debit to Supplies and a credit to Accounts Payable. d) a debit to Supplies and a credit to Accounts Receivable.