Part B. Multiple Choice Questions. There are multiple choices for each question below. Please write the correct answers with the order number on the answer sheet. The wrong or less choices will not score. (A total of 10 questions and each item 2 points, total 20 points) 1. Indicate all of the following statements that correctly describe net income: A. Is equal to revenue minus expenses. B. Is equal to revenue minus the sum of expenses and dividends. C. Increases owners' equity. D. Is reported by a company for a specific period of time 2. Indicate all correct answers. In the accounting cycle: A. Transactions are posted before they are journalized. B. A trial balance is prepared after journal entries have been posted. C. The Retained Earnings account is not shown as an up to date figure in the trial balance. D. Journal entries are posted to appropriate ledger accounts. 3. Indicate all correct answers. Dividends: A. Decrease owners' equity. B. Decrease net income C. Are recorded by debiting the Dividend account. D. Are a business expense 4. Which of the following accounts is closed to the Income Summary account at the end of the accounting period? A. Rent Expense. B. Accumulated Depreciation. C. Unearned Revenue. D. Supplies Expense. 5. Which of the following is an example of an intangible asset? A. Patents B. Goodwill C. Copyrights D. Land 6. Marietta Corporation uses a perpetual inventory system. All of its sales are made on account. The company sells merchandise costing $3,000 at a sales price of $4,300. In recording this transaction, Marietta will make all of the following entries: A. Credit Sales, $4,300. B. Credit Inventory, $4,300. C. Debit Cost of Goods Sold, $3,000. D. Debit Accounts Receivable, S4,300. 7. Which of the following statements about merchandising activities is true? A. As inventory is purchased, the Inventory Expense account is debited and Cash (or Accounts Payable) is credited. B. Inventory is recorded as an asset when it is first purchased. C. As inventory is sold, its cost is transferred from the balance sheet to the income statement. D. As inventory is sold, its cost is transferred from the income statement to the balance sheet. 8. Which of the following accounts would NOT be classified as a current asset on the balance sheet? A. Office Equipment B. Land C. Accumulated Depreciation D. Accounts Receivable 9. Which of the following accounts would appear in the after closing trial balance? A. Unearned revenue. B. Cash. C. Accumulated depreciation. D. Income taxes expense. 10. Internal users of accounting information include all of the following: A. Government regulators. B. Customers. C. Creditors D. Shareholders