20. Issuing cash for stock is an example of: A. Operating Activity B. Investing Activity C. Financing Activity

21. Buying equipment for company use is an example of: A. Operating Activity B. Investing Activity C. Financing Activity

22. Paying employee salaries is an example of: A. Operating Activity B. Investing Activity C. Financing Activity

23. Which financial statement shows the summary of assets/liabilities/stockholders equity? A. Income Statement B. Statement of Changes in Shareholders Equity C. Balance Sheet D. Cash Flow Statement

24. Which financial statement shows changes to retained earnings? A. Income Statement B. Statement of Changes in Shareholders Equity C. Balance Sheet D. Cash Flow Statement

25. The principle which states that revenue should be recognized in the period in which it is earned and reasonably expected to be collected is? A. Matching Principle B. Time Period Assumption C. Revenue Recognition Principle D. Conservatism

26. This principle states that expenses should be recognized in the same period in which they create revenue. A. Matching Principle B. Time Period Assumption C. Revenue Recognition Principle D. Conservatism

27. Unearned revenue is? A. liability B. deferral C. Both A and B D. An Accrual

28. Allowance for doubtful accounts is what type of account? A. Asset B. Liability C. Contra Asset D. Contra Revenue

29. Which of the following is included in the cost of inventory? A. Purchase Price B. Freight In C. Installation/Set Up Charges D. All of the above

30. Which type of inventory system involves updating the inventory account only at the end of the accounting period? A. Periodic Inventory System B. Perpetual Inventory System C. Direct Inventory System D. Indirect Inventory System