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14) On November 1, 2021, a company receives cash of $6,000 from a customer for services to be provided evenly over the next six months.

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14) On November 1, 2021, a company receives cash of $6,000 from a customer for services to be provided evenly over the next six months. Deferred revenue is recorded at that time. Which of the following adjusting entries is needed on December 31, 2021? A) Debit Deferred Revenue for $2,000; Credit Cash for $2,000 B) Debit Deferred Revenue for $2,000; Credit Service Revenue for $2,000 C) Debit Deferred Revenue for $6,000; Credit Service Revenue for $6,000 D) Debit Service Revenue for $2,000; Credit Deferred Revenue for $4,000 14) 15) 15) An adjusted trial balance: A) Lists all accounts and their balances at a particular date after updating account balances for adjusting entries. B) Is used to prepare the financial statements. C) Includes balances for revenues, expenses and dividends. D) All of the above. 16) 16) The Sarbanes-Oxley Act (SOX) mandates which of the following? A) Increased regulation related to auditor-client relations. B) Increased regulations related to internal control. C) Increased regulations related to corporate executive accountability. D) All of the above. 17) What is the concept behind separation of duties in establishing internal control? A) Employee fraud is less likely to occur when access to assets and access to accounting records are separated. B) The company's financial accountant should not share information with the company's tax accountant. C) Duties of middle-level managers of the company should be clearly separated from those of top executives. D) The external auditors of the company should have no contact with managers while the audit is taking place. 17) 18) Which of the following is considered cash for financial reporting purposes? A) Accounts Receivables. B) Investments with maturity dates greater than three months. C) Checks received from customers. D) Accounts payable. 18) 9) Which of the following adjusts the bank's balance of cash in a bank reconciliation? A) NSF checks. C) An error by the company. 19) B) Service fees. D) Checks outstanding

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