11. Adjusting entries are made to ensure that:

a. expense are recognized in the period in which they are incurred.

b. revenues are recorded in the period in which they are earned.

c. balance sheet and income statement accounts have correct balances at the end of an accounting period.

d. All of the above.

12. Which of the following is not a current asset?

a. cash

B. accounts receivable

c. land

d. none of the above

13. If goods are in transit are shipped FOB shipping point

a. the seller has legal title to the goods.

b. the buyer has legal title to the goods.

c. the transportation company has legal title to the goods.

d. no one has legal title to the goods.

14. The term "FOB" denotes

a. free on board.

b. freight on board.

c. free only (to) buyer.

d. freight charge on buyer.

15. On a classified balance sheet, accounts receivable is classified as

a. an intangible asset.

b. property, plant, and equipment.

c. a current asset.

d. a current liability