1. Which of the following will you expect to find in an income statement? a. Accounts Receivable c. Santos Drawing b. Salaries Payable d. Salaries Expense 2. The following statements regarding net profit are correct except one a. It appears in the income statement b. It appears in the statement of owner's equity c. It appears in the statement of financial position d. It is the excess of revenues over expenses 3. Which of the following will you expect to find in a statement of owner's equity? a. cash balance, end of year c. owner's contributions and withdrawals b. revenues and expenses d. liabilities due to creditors 4. Which of the following is not a current asset? a. Deposit for rent c. Accounts Receivable b. Supplies on hand d. Marketable Securities 5. This is an account used for telephone, water and power services received or used up a. Utilities Expense c. Communication Expense b. Repair Expense d. Power Expense

6. One of the following is not found in the current liability section a. 60 day 5% notes payable c. Mortgage Payable b. Taxes Payable d. Advances from Clients 7. Cash withdrawn by the owner decreases assets and decreases owner's equity. Net income which increases owner's equity is considered a return on capital. a. Both statements are true c. Only the first statement is true b. Both statements are false d. Only the second statement is true

8. Treatment for expenditures when no future benefits can be determined is under the principle of a. Matching b. Accrual c. Immediate Recognition d. Cost 9.Principle of recognizing expenses in the same period as the revenues they generate a. Matching b. Accrual c. Immediate Recognition d. Cost