4. The method that uses cash account to prepare cash flow from operating activities section of cash flow statement is:

	a.	Indirect Method
	b.	Reciprocal Method
	c.	Direct Write off Method
	d.	Direct Method

7.Amounts received in advance from customers for future products or services:

b.

Are not allowed under GAAP

c.

Increase income

d.

Are revenues

13. The recurring steps performed in each accounting period, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, are referred to as the:

	a.	Accounting Period
	b.	Accounting Cycle
	c.	Operating cycle
	d.	Closing cycle

15. _________ is a present obligation that grew out of a past event and will require a future sacrifice to extinguish the obligation.

	a.	Equity
	b.	Unearned Revenue
	c.	Liability
	d.	Expense