A company performs services for a customer in December, cash is not collected until February. Following GAAP, in which month would the company recognize revenue?

Select one:

a. January

b. February

c. December

d. What is Revenue?

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Which of the following is NOT an item deducted from an employee's gross salary to arrive at net pay to an employee?

Select one:

a. Employee portion of FICA tax for Social Security.

b. Employee portion of FICA tax for Medicare.

c. Federal unemployment tax.

d. Medical premiums paid by the employee.

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The balance sheet of ABC Company contained the following accounts and balances:

Cash $50,000 Building ??? Accumulated Depreciation $25,000 Notes Payable $13,000 Common Stock $10,000 Retained Earnings $40,000 Based on this information, what is the value of the building?

Select one:

a. $38,000

b. $12,000

c. $25,000

d. $40,000

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Which of the following is a disadvantage of a sole proprietorship?

Select one:

a. Easy to raise capital.

b. Unlimited liability.

c. Double taxation.

d. Excessive regulation.

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The following income statement was drawn from the annual report of Newtown Company:

Cash Revenue 30,000 Depreciation expense (10,000) Accrued interest expense (not paid) (3,000) Cash Operating Expenses (12,000) Operating income 5,000 Gain on sale of equipment 600 Net Income 5,600 What is the amount of cash flow from operating activities?

Select one:

a. $16,200 Inflow

b. $15,000 Inflow

c. $25,000 Outflow

d. $18,000 Inflow