$1.$ Which of the following persons or groups have the ultimate control of a corporation?

$2$ points

A$)$ the chief executive officer

B$)$ the board of directors

C$)$ the audit committee

D$)$ the shareholders

$2.$ Since they are both the same activities, the terms "accounting" and "bookkeeping" are synonymous and can be used interchangeably.

$2$ points

A$)$ True

B$)$ False

$3.$ The owners' interest in the assets of a corporation is known as:

$2$ points

A$)$ assets

B$)$ shareholders equity

C$)$ expenses

D$)$ revenues

$4.$ If liabilities increase $$120,000$ during a given period and shareholders' equity decreases $$25,000$ during the same period, assets must:

$2$ points

A$)$ decrease $$145,000$

B$)$ increase $$145,000$

C$)$ increase $$95,000$

D$)$ decrease $$95,000$

$5.$ On January $1,2020,$ total assets for Liftoff Technologies were $$125,000$; on December $31,2020,$ total assets were $$145,000.$ On January $1,2020,$ total liabilities were $$110,000$; on December $31,2020,$ total liabilities were $$115,000.$ What are the amount of the change and the direction of the change in Liftoff Technologies shareholders' equity for $2020?$

$2$ points

A$)$ decrease of $$15,000$

B$)$ increase of $$15,000$

C$)$ increase of $$30,000$

D$)$ decrease of $$30,000$

$6.$ Which financial statement must be prepared before the others?

$2$ points

A$)$ income statement

B$)$ balance sheet

C$)$ cash flow statement

D$)$ retained earnings statement

$7.$ Interest payable, income tax payable and salary payable are all examples of:

$2$ points

A$)$ accrued liabilities

B$)$ prepaid expenses

C$)$ expenses of future periods

D$)$ retained earnings

$8.$ The payment of an amount owed to a creditor would:

$2$ points

A$)$ increase assets

B$)$ increase liabilities

C$)$ decrease net income

D$)$ decrease liabilities

$9.$ An owner investment of a building, valued at $$100,000$ with an $$80,000$ outstanding mortgage, transferring this asset into the business would:

$2$ points

A$)$ increase assets by $$20,000$

B$)$ increase assets by $$80,000$

C$)$ increase shareholders equity by $$20,000$

D$)$ increase shareholders equity by $$100,000$

$10.$ The purchase of office equipment for cash would include a:

$2$ points

A$)$ debit to Cash

B$)$ debit to Office Equipment

C$)$ credit to Accounts Payable

D$)$ credit to Office Equipment

$11.$ Paying a dividend to the company's shareholders would include a:

$2$ points

A$)$ debit to Cash and a credit to Dividends

B$)$ debit to Dividends and a credit to Cash

C$)$ debit to Retained Earnings and a credit to Dividends

D$)$ debit to Accounts Payable and a credit to Retained Earnings

$12.$ Posting, a part of the accounting process, refers to:

$2$ points

A$)$ copying amounts from the accounts in the general ledger to the journal

B$)$ copying amounts from the financial statements to the general ledger

C$)$ copying amounts from the journal to the appropriate accounts in the general ledger

D$)$ copying amounts from the general ledger to the financial statements

$13.$ An accountant who records a transaction only when cash is received or disbursed is using which basis of accounting?

$2$ points

A$)$ prepaid

B$)$ accrual

C$)$ cash

D$)$ deferral

$14.$ Which of the following transactions would be recorded at the time the transaction occurs under the accrual basis, but would not be recorded until sometime in the future under the cash basis?

$2$ points

A$)$ sale of merchandise on account

B$)$ payment of interest expenses

C$)$ payment of employee salaries

D$)$ issuance of stock

$15.$ On December $15,2019,$ a company receives an order from a customer for services to be performed on December $28,2019.$ Due to a backlog of orders, the company does not perform the services until January $3,2020.$ The customer pays for the services on January $6,2020.$ When should revenue be recorded by the company?

$2$ points

A$)$ December $15,2019$

B$)$ January $3,2020$

C$)$ December $28,2019$

D$)$ January $6,2020$

$16.$ To obtain a new customer, a business sells merchandise to the customer for $$100.$ Normally, the merchandise sells for $$120.$ For this sale, the business should record revenue of $$100,$ not $$120.$

$2$ points

A$)$ True

B$)$ False

$17.$ The journal entry to accrue for interest expense is a credit to which account?

$2$ points

A$)$ Cash

B$)$ Interest expense

C$)$ Accounts payable

D$)$ Interest payable

$18.$ A journal entry contains a debit to the Cash account and a credit to the Unearned Service Revenue account. This is an example of a$($n$)$:

$2$ points

A$)$ deferred expense

B$)$ accrued expense

C$)$ accrued revenue

D$)$ deferred revenue

$19.$ On December $1,2020,$ Cream Ale Ltd$.$ receives $$1,800$ in advance for an agreement to brew beer during the months of December, January, and February. As of Decem