19. Goods purchased on account for future use in the business, such as supplies, are called

	a.	revenues
	b.	prepaid expenses
	c.	prepaid liabilities
	d.	liabilities

20. Debts listed as current liabilities are those that

	a.	are owed to the stockholders and will never be paid
	b.	will be paid in less than one year
	c.	are due to be paid in 5 to 10 years
	d.	are due to be paid in more than one year

21. Net income appears on the end-of-period spreadsheet in the

	a.	debit column of the Balance Sheet columns
	b.	debit column of the Income Statement columns
	c.	credit column of the Income Statement columns
	d.	debit column of the Adjustments columns

22. A credit balance in which of the following accounts would indicate a likely error?

	a.	Fees Earned
	b.	Salary Expense
	c.	Accounts Payable
	d.	Common Stock

23. The net book value of a fixed asset is determined by the original cost

	a.	less market value
	b.	less accumulated depreciation
	c.	less accumulated depreciation plus depreciation expense
	d.	plus accumulated depreciation

24. Which of the following accounts should be closed to Income Summary at the end of the fiscal year?

	a.	Prepaid Insurance
	b.	Equipment
	c.	Unearned Rent
	d.	Service Revenue