If goods in transit are shipped FOB destination. a) The seller has legal title to the goods until they are delivered. b) The buyer has legal title to the goods during transit. c) The transportation company bas legal title to the goods while the goods are in transit. d) No one has legal title to the goods until they are delivered. A legal firm received exist2,000 cash for legal services to be rendered in the future. The full amount was credited to the account Unearned Service Revenue. If the legal services have been provided at the end of the accounting period and no adjusting entry is made, this would cause: a) Expenses to be overstated. b) Net earnings (profit) to be overstated. c) Liabilities to be understated. d) Revenues to be understated. An intangible asset should a) Not be amortized if it has an finite life. b) Be amortized over its legal or useful life, whichever is longer. c) Be amortized over its legal or useful life, whichever is shorter. d) Be amortized over 5 years or less. Goodwill can be recorded a) When customers keep returning because they are satisfied with the company's products. b) When the company acquires a good location for its business. c) When the company has exceptional management. d) Only when there is a purchase of an entire business. Which of the following statements concerning research and development costs is NOT true? a) All research costs should be expensed as incurred. b) Development costs with probable future benefits should be capitalized. c) All development costs should be capitalized. d) Development costs associated with successful commercial rescarch would be amortized over the useful life of the product or process developed. If an account receivable is collected after having been written off: a) The allowance for doubtful accounts will be debited b) The accounts receivable control account will be credited. c) The accounts receivable control account will be both debited and credited. d) Both income statement and statement of financial position accounts will be affected. Mercy General Hospital recently constructed a new parking lot. The paving cost exist25,000 and lighting to illuminate the parking lot cost exist13,000. Which of the following statements is TRUE with respect to these expenditures? a) exist13,000 should be debited to Lighting expense. b) exist25,000 should be debited to Land. c) exist38,000 should be debited to Land. d) exist38,000 should be debited to Land improvements