Paying a dividend to the company's shareholders would include a:

$2$ points

A$)$ debit to Cash and a credit to Dividends

B$)$ debit to Dividends and a credit to Cash

C$)$ debit to Retained Earnings and a credit to Dividends

D$)$ debit to Accounts Payable and a credit to Retained Earnings

Posting, a part of the accounting process, refers to:

$2$ points

A$)$ copying amounts from the accounts in the general ledger to the journal

B$)$ copying amounts from the financial statements to the general ledger

C$)$ copying amounts from the journal to the appropriate accounts in the general ledger

D$)$ copying amounts from the general ledger to the financial statements

An accountant who records a transaction only when cash is received or disbursed is using which basis of accounting?

A$)$ prepaid

B$)$ accrual

C$)$ cash

D$)$ deferral

Which of the following transactions would be recorded at the time the transaction occurs under the accrual basis, but would not be recorded until sometime in the future under the

$2$ points

cash basis?

A$)$ sale of merchandise on account

B$)$ payment of interest expenses

$1$ C$)$ payment of employee salaries

D$)$ issuance of stock

On December $15,2019,$ a company receives an order from a customer for services to be performed on December $28,2019.$ Due to a backlog of orders, the company does not perform the services until January $3,2020.$ The customer pays for the services on January $6,2020.$

$2$ points

When should revenue be recorded by the company?

A$)$ December $15,2019$

$1$ B$)$ January $3,2020$

C$)$ December $28,2019$

D$)$ January $6,2020$

To obtain a new customer, a business sells merchandise to the customer for $$100.$ Normally, the merchandise sells for $$120.$ For this sale, the business should record revenue of $2$ points $$100,$ not $$120.$

A$)$ True

B$)$ False

The journal entry to accrue for interest expense is a credit to which account?

$2$ points

A$)$ Cash

B$)$ Interest expense

$1$ C$)$ Accounts payable

D$)$ Interest payable

A journal entry contains a debit to the Cash account and a credit to the Unearned Service Revenue account. This is an example of $a(n)$ :

$2$ points

A$)$ deferred expense

B$)$ accrued expense

C$)$ accrued revenue

D$)$ deferred revenue

On December $1,2020,$ Cream Ale Ltd$.$ receives $$1,800$ in advance for an agreement to brew beer during the months of December, January, and February. As of December $31,2020,$

$2$ points

Cream Ale Ltd:

A$)$ would have a $$1,200$ liability to its client under accrual accounting, and would have a $$1,800$ liability to its client under cash$-$basis accounting

B$)$ would have recognized $$600$ revenue under accrual accounting, and would have recognized $$1,800$ revenue under cash$-$basis accounting

C$)$ would have a $$0$ liability to its client under accrual accounting, and would have a $$1,200$ liability to its client under cash$-$basis accounting

D$)$ would have recognized $$600$ cash under accrual accounting, and would have recognized $$1,800$ cash under cash$-$basis accounting

Non$-$current assets:

$2$ points

A$)$ are held for sale by the business

B$)$ generally are not subject to depreciation

C$)$ include Inventory, Equipment, and Land

D$)$ are used in the operations of the business