1.Which of the following would be included on an income statement?

a.Cash

b.Accounts receivable

c.Land

d.Cost of goods sold

2.Which of the following is considered a liability?

a.Equipment

b.Retained earnings

c.Interest payable

d.Capital stock

3.Which of the following would be classified as a current liability?

a.Accounts payable

b.Inventory

c.Bank loan due in 24 months

d.Prepaid rent

4.Which of the following would be classified as a noncurrent liability?

a.Wages payable

b.Bank loan due in 6 months

c.Investment in the stock of another company.

d.Portion of mortgage payable not due within the next 12 months

5.Which of the following is NOT considered to be an owners' equity account?

a.Capital stock.

b.Retained earnings

c.Gain

d.All of these are owners' equity accounts

6.The following information was taken from the records of Thompson Corporation for the year ended December 31, 2013:

Dividends paid$ 12,800

Service revenue90,500

Accounts payable 139,750

Capital stock 378,750

Total expenses67,000

Retained earnings (at 1/1/2013)43,400

The net income at December 31, 2013 was

a.$23,500

b.$54,100

c.$43,400

d.$72,750

7.Which of the following is a revenue generating activity?

a.Borrowing money from a bank.

b.Paying rent.

c.Service is provided.

d.Issuing capital stock.

8.The internal audit manager reports directly to

a.Public Company Accounting Oversight Board (PCAOB).

b.Controller.

c.Audit Committee.

d.External Auditors.