10) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) when services are performed and cash is received D) when cash is received, 30 days after the completion of the services 11) The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the A) comparison B) accrual C) matching D) revenue recognition principle. 12) Bryson Accounting Services performed accounting services for a client in December. A bill was mailed to the client on December 30. The company received a check by mail on January 5. Which of the following accounts should appear on the balance sheet as of December 31 as related to the services performed? A) Prepaid Expense B) Accounts Receivable C) Unearned Revenue D) None, there is no entry in December. 13) Hank's Tax Planning Service started business in January 2016. The company rented an office for $1,800 per month starting from January 1, 2016. On that day, Hank prepaid the rent through June 30. The company makes adjusting entries at the end of each month. What is the balance in the Prepaid Rent account as of April 30, 2016? A) $3,600 B) $300 C) $1,800 D) $900 14) Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year, are called A) intangible B) plant C) long-term D) current assets. 52