27. Which of the following is an asset? 1. Accounts Receivable 2. Accounts Payable 3. Common Stock 4. Dividends 28. To show how successfully your business performed during a period of time, you would report its revenues and expenses in the 1. balance sheet. 2. income statement. 3. statement of cash flows. 4. retained earnings statement. 29. Ashley's Accessory Shop started the year with total assets of $210,000 and total liabilities of $120,000. During the year the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000. The net income reported by Ashley's Accessory Shop for the year was 1. $120,000. 2. $150,000. 3. $195,000. 4. $165,000. 5. None of the above 30. As of January 1, 20XX, Elena's Store had a balance in its retained earnings account of $100,000. During the year Elena's Store had revenues of $80,000 and expenses of $45,000. In addition, the business paid cash dividends of $20,000. What is the balance in Retained Earnings at December 31, 20XX for Elena's Store? 1. $100,000 2. $115,000 3. $135,000 4. $155,000 5. None of the above 31. Which of the following financial statements is concerned with the company at a point in time? 1. Balance sheet 2. Income statement 3. Retained earnings statement 4. Statement of cash flows 32. An income statement 1. summarizes the changes in retained earnings for a specific period of time. 2. reports the changes in assets, liabilities, and stockholders' equity over a period of time. 3. reports the assets, liabilities, and stockholders' equity at a specific date. 4. presents the revenues and expenses for a specific period of time. 33. The accounting cycle does includes: A. Making adjusting entries B. Making closing entries C. Preparing post-closing trial balance D. All of the above 34. Which of the following is not a feature of the separate entity concept? A. Business and owner are treated as separate entities B. Personal affairs of the owner should not be considered C. Business should not be dissolved in the near future D, This concept is followed in all types of businesses 35. Going concern can be defined best as: A. The concept provides the basis for the formation of the accounting equation. B. This concept refuses allocation of cost on different accounting periods. C. This concept discusses the issue of the realization of profit. D. This concept assumes that the business will operate for a long period of time and will not be dissolved in the near future. 36. Matching concept does not include one of the following: A. The revenues of a particular period must match with the expenses of that period. C. This concept also required allocation of cost on different accounting periods. D. Revenues should only be recorded if there is reasonable certainty about its realization. E. The comparison of incomes and expenses of a period gives the net profit or loss for that particular period. 37. Generally accepted principles do not include: A. Depreciation convention B. Conservatism convention C. Consistency convention D. Full disclosure convention 38. The realization concept does not include one of the following features: A. The concept requires proper care when calculating revenue. B. The concept stresses that revenues should only be recorded if there is reasonable certainty about their realization. C. The concept describes the problems that may arise in the calculation of incomes and expenses. D. The concept explains that the comparison of incomes and expenses for a particular period can give the period's net result 39. According to consistency convention, accounting principles should be: A. Consistent B. Variable C. Flexible D. Factual 40. One of the following is not an example of the materiality concept: A. Purchase of pencil recorded as an expense instead of including in stock B. Purchase of car for private use C. Purchase of plant for business D. Purchase of building to extend the business 41. The disclosure convention requires: A. Full disclosure of all material facts that can affect the financial statement B. That profit should be realized. C, Matching of incomes and expenses for a particular period. D. The business to avoid being dissolved in the near future