14. The income statement format, ( ), reports income from operations.

A. account format B. single-step format

C. report format D. multiple-step format

15. Accumulated depreciation is reported on the ( ).

A. balance sheet B. income statement

C. statement of retained earnings D. statement of cash flows

16. ( ) belong to current assets.

A. Furniture B. Accounts Receivable C. Land D. Intangible Assets

17. The links between the financial statements are ( ).

A. net income from the income statement to the statement of retained earnings

B. retained earnings from the statements of retained earnings to the balance sheet

C. both of the above D. none of the above

18. ( ) is the basis for recording expenses.

A. Revenue principle B. Matching principle

C. Time-period concept D. The accounting period

19. Sales total $440,000, cost of goods sold is $210,000, and operating expenses are $160,000. Then the gross profit is ( ).

A. $440,000 B. $280,000 C. $230,000 D. $70,000

20. The focal point of the accounting cycle is the ( ).

A. financial statement B. adjusted trial balance C. trial balance D. work sheet

32. When a Notes Receivable is dishonored, Accounts Receivable is debited for ( ).

A. the face value of the note

B. the maturity value of the note

C. the maturity value of the note less accrued interest

D. the maturity value of the note plus accrued interest