MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1. There are 2 types of leases for accounting purposes, operating leases and financing leases. Assets and offsetting liabilities are recognized in which of the following Operating Lease Financing Lease A) YES YES B) YES NO C) NO YES D) NO NO 2) Revenue should be recognized when the performance obligation has been satisfied. This is normally when a customer controls" the asset. Which of the following is not an example of control? A) Asset can be resold B) Asset can be borrowed against C) Asset is in your possession D) Legal title has been transferred 3) Jane's Donut Co. borrowed $200,000 on January 1, 2019, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2021. In connection with this note, Jane's should report interest expense at December 31, 2019, in the amount of: A) $0 B) $48,000 C) $50,880 D) $24,000 4) Dooling Corporation reported balances in the following accounts for the current year: Beginning Ending Inventories $600 S300 Accounts payable 300 500 Cost of goods sold was $7,500. What was the amount of cash paid to suppliers? A) $7,200 B) $7,500 C) $7,000 D) $7,300 5) Two of the three primary account classifications within shareholders' equity are: A) Paid-in capital and retained earnings B) Preferred and common stock C) Preferred stock and retained earnings D) The par value of common stock and retained earnings