32. Smith Co. received a $24,000 cash advance as payment for an office it will lease for a full year (12 months). At the end of the first month Smith will: A. Credit cash for $2,000 B. Debit cash for $2,000 C. Credit Rent Revenue for $2,000 D. Debit Rent Revenue for $2,000 33. The process of zeroing out (i.e. closing) the net income for the year requires transferring the amount to: A. Common Stock B. Cash C. Dividends D. Retained Earnings 34. Which statement is not true regarding the closing process? A. Once complete the balance sheet accounts will be "0" B. Once complete the income statement accounts will be "0" C. Done at the end of the fiscal year to start a new income statement with all balances at "0" D. It is the process of closing revenues and expenses into shareholders' equity Chapter 5: 35. Current assets include cash and those assets that are expected to be converted to cash or used up within one year, or an(a) whichever is longer. A. Business cycle B. Fiscal year C. Operating cycle D. Current asset year 36. Accounts receivable is recorded in the balance sheet as a: A. Fixed asset B. Current liability C. Intangible asset D. Current asset