Need Help With Answers These Questions;

7. The revenue recognition principle dictates that revenue should be recognized in the accounting records:

A) when cash is received.

B) when it is earned.

C) in the period that income taxes are paid.

D) none of the above

8. A credit sale of $600 is made on July 15, terms 1/10, net/30, on which a return of $100 is granted on July 18. What amount is received as payment in full on July 24?

A) $495

B) $600

C) $693

D) None of the above

9. Which of the following is not a liability?

A) notes payable.

B) accounts payable.

C) unearned revenue.

D) salaries expense.

10. A multiple step income statement has:

A) Cost of goods sold and Gross profit.

B) Is used for a merchandising business.

C) Includes other expenses

D) All of the above

PROBLEM A: You have recently purchased ABC Pretzels in the Freehold Mall. Explain how what you learned about internal control will help you run your business. (Write four well constructed sentences)