6.JJ's roofing company entered into a contract with Mr. Peterson on March 2, 2015, to fix a hole in the family's roof. JJ's roofing fixed the hole on March 20 and sent a bill to the client on March 25. JJ's roofing received the payment on April 1. When should JJ's roofing have recorded the revenue?

A.When the work was completed on March 20

B.When the contract was signed on March 2

C.When the customer was billed on March 25

D.When the customer paid the bill April 1

19.Which of the following is a permanent account?

A.Accumulated depreciation

B.Gain on sale of equipment

C.Cost of goods sold

D.Depreciation expense

16.In its 2016 annual report, GE reported the following: "We provide for estimated product warranty expenses when we sell the related products." This note exemplifies GE's use of what principle?

A.Revenue recognition

B.Conservatism principle

C.Economic entity

D.Expense recognition

18.Sisco Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2015, and charged the $4,200 premium to Insurance expense. At its December 31, 2015, year-end, Sisco Foods would record which of the following adjusting entries?

A.

Insurance expense

875

Prepaid insurance

3,325

Insurance payable

4,200

B.

Prepaid insurance

875

Insurance expense

875

C.

Prepaid insurance

3,325

Insurance expense

3,325

D.

Insurance expense

875

Prepaid insurance

875