Q1 - Which financial statement is prepared according to cash basis of accounting:

a. Cash Flow Statement

b. Income Statement

c. Balance Sheet

d. Retained earnings Statement

Q2 - ............... is a present obligation that grew out of a past event and will require a future sacrifice to extinguish the obligation.

a. Unearned Revenue

b. Equity

c. Expense

d. Liability

Q3 - Days sales uncollected ratio is

a. Average receivable/ credit sales

b. Accounts receivable/ net credit sales* 365 days

c. Credit sales/ average receivable

d. Accounts receivable/ total average assets.