11. Unearned revenues are: (Points : 2) Revenues that have been earned and received in cash Revenues that have been earned but not yet collected in cash Liabilities created when a customer pays in advance for products or services before the revenue is earned Recorded as an asset in the accounting records 12. Which of the following accounting principles dictates when expenses are recognized? (Points : 2) Revenue recognition principle Monetary unit principle Business entity principle Matching principle Full disclosure principle 13. If Beginning Retained Earnings was $184,300, the company distributed $46,000 in dividends and Ending Retained Earnings was $345,000, what was the net income for the period? (Points : 2) $154,700 $206,700 $114,700 $575,300 $160,700 14. The primary objective of financial accounting is: (Points : 2) To serve the decision-making needs of internal users To provide financial statements to help external users analyze and interpret an organization's activities To monitor and control company activities To provide information on both the costs and benefits of managing products and services To know what, when and how much to produce 15. An example of a financing activity is: (Points : 2) Buying office supplies Obtaining a long-term loan Buying office equipment Selling inventory Buying land 16. On April 1, 2011, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2011? (Points : 2) $1,350 $450 $1,012.50 $337.50 $37.50 17. Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance? Cash $ 6,754 Dividends $ 2,000 Accounts receivable $ 13,733 Consulting fees earned $ 13,718 Office supplies $ 2,625 Rent expense $ 3,673 Land $ 37,153 Salaries expense $ 6,642 Office equipment $ 14,535 Telephone expense $ 560 Accounts payable $ 6,463 Miscellaneous expense $ 280 Common stock $ 54,490 Retained Earnings ? (Points : 2) $0 $13,718 $13,155 $13,284 18. Which of the following identifies the proper order of the accounting cycle? (Points : 2) Analyze, Journalize, Unadjusted Trial Balance Analyze, Post, Unadjusted Trial Balance Journalize, Post, Adjusted Trial Balance Unadjusted Trial Balance, Adjusted Trial Balance, Close Adjusted Trial Balance, Adjustments, Financial Statements 19. Which of the following accounts would not be on the post closing trial balance? (Points : 2) Accounts Payable Accounts Receivable Common Stock Dividends 20. A trial balance prepared after the closing entries have been journalized and posted is the: (Points : 2) Unadjusted trial balance Post-closing trial balance General ledger Adjusted trial balance Work sheet 21. A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance and financial statements and which is an optional tool in the accounting process is a(n): (Points : 2) Adjusted trial balance Work sheet Post-closing trial balance Unadjusted trial balance General ledger 22. A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011? (Points : 2) $3,250 $3,500 $4,000 $6,500 $7,000 23. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: (Points : 2) Debit Prepaid Insurance, $1,800; credit Cash, $1,800 Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440 Debit Prepaid Insurance, $360; credit Insurance Expense, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440 24. On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated useful life of five years. What is the amount that should be recorded as depreciation on December 31? (Points : 2) $27,000 $24,900 $29,100 $135,000 25. The adjusted trial balance contains information pertaining to: (Points : 2) Asset accounts only Balance sheet accounts only Income statement accounts only All general ledger accounts Revenue accounts only