A promissory note is not a formal credit instrument. may be used to settle an account receivable. has the party to whom the money is due as the maker? cannot be factored to another party. Which one of the following represents the expanded basic accounting equation? Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues Assets - Liabilities - Dividends = Common Stock + Revenues - Expenses Assets = Revenues + Expenses - Liabilities If a company is using accrual basis accounting, when should it record revenue? When cash is received, even though services may be performed at a later date When services are performed, even though cash may be received at a later date. When services are performed and cash is received When cash is received. 30 days after the completion of the services Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement. Gross profit Operating expenses Sales revenues Cost of goods sold Which one of the following would not be considered an advantage of the corporate form of organization? Limited liability of stockholders Separate legal existence Continuous Life Government Regulation An adjusted trial balance is prepared after the financial statements are completed. proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. is a required financial statement under generally accepted accounting principles? cannot be used to prepare financial statements. Which of the following is not an internal control procedure for cash? Only designated personnel are authorized to handle cash. The same individual receives the cash and pays the bills. Surprise audits of cash on hand should be made occasionally. Access to cash is limited