1).SaaSCo Inc. is a software company. In July 2023 they invested $500 in a new technology platform called Bug-Chat which allows customers to chat with the support team to resolve bugs in the software. How should this expense be categorized?

-Investment asset (Asset account)

-Technology & Tools (Cost of Goods Sold account)

-Technology & Tools (General & Administrative account)

-Subscriptions (General & Administrative account)

2).What might prompt a business change from cash to accrual basis accounting?

*Select all that apply*

-To use the income statement as a proxy for cash flow

-To comply with ASC 606

-To provides a more accurate snapshot of a firms financial health

-To simplify a firms accounting

3.You are closing the books for a partnership in the month of January. As of January 1st You see $100,000 in distributions, $200,000 in contributions, $500,000 in Retained Earnings and Net Income of $1,000. How should this be presented on the Balance Sheet?

-The Distributions, Contributions, Retained Earnings and Net Income should all be liability accounts.

-The Distributions, contributions and retained earnings should all be closed to the partners capital accounts as of January 1st

-The distributions, contributions and the net income should all be closed to Retained Earnings on January 1st

-The distributions and contributions should be closed to retained earnings on January 1st.