Custom Cabinets had total sales revenue for the year ending December 31, 2020 equal to $1,500,000 30% of which were on account. If accounts receivable had a beginning balance of $1,300,000 and an ending balance of $920,000, what amount of accounts receivable must have been paid during the year?

a.

$650,000

b.

$1,880,000

c.

$580,000

d.

$380,000

2)

Which of the following concepts best describes when revenue should be recognized:

a.

Time-period assumption

b.

Matching objective

c.

Recognition criteria for revenue

d.

Cost principle

3)

California Melons Ltd provided you with the following listing of year ending adjusted balances:

Sales Revenue $230,000

Rent Expense $100,000

Interest Income $21,000

Insurance Expense $71,000

Cost of Goods Sold $100,000

Gain on Disposal of Land $73,000

Interest Expense $31,000

Given the above information, net earnings (loss) is equal to:

a.

($166,000)

b.

($23,000)

c.

$22,000

d.

($41,000)