Question 1 -- / 1 Which of the following is correct with respect to the Balance Sheet? 1 It should present a picture of what the company earned during the period. 2 It shows the cumulative earnings that have not been paid out to shareholders. 3 It reports what a company owns, owes and its net worth at a specific point in time. 4 It demonstrates how the company used its cash reserves during the period. Question 2 -- / 1 Which of the following is true with regards to the trial balance? The trial balance is a list of general ledger accounts and their balances at a specific time. 2 No errors are possible in the trial balance if total debits equal total credits. 3 All the answers given are correct with respect to the trial balance. On the trial balance, revenues and expenses are normally listed first, with balance sheet accounts listed after. Question 3 -- / 1 Which of the following adjusting entries involves cash being received before it is earned? 1 Depreciation 2 Prepaid expenses 3 Unearned revenue 4. Accrued revenue Question 4 -- / 1 Which of the following is a NOT an example of a liability? 1 Operating line of credit 2 Bank debt 3 Accounts Payable 4 Common Shares Question 5 -- / 1 Which of the following states that expense recognition must be associated as closely as possible with revenue recognition? 1 Revenue and expenses recognition 2 Time Period Assumption 3 Revenue Recognition Principle 4 Going Concern Assumption