38. External users of accounting information include all of the following except

a. Line managers.

b. General public.

c. Labor unions.

d. Investors.

39. What type of adjusting entry is the following?

Salaries expense 1,700

Salaries payable 1,700

a. Accrue revenue

b. Convert asset to expense

c. Convert liability to revenue

d. Accrue expense

40. Which of the following is not a user of internal accounting information?

a. Chief executive officer.

b. Creditor.

c. Chief financial officer.

d. Store manager.

41. The realization (or revenue recognition) principle states that:

a. Revenue should be recognized when cash is received.

b. The item is not significant enough to influence decisions.

c. The cost of an asset should be allocated over its useful life.

d. Revenue should be recognized in the period when it is earned.