Question 13 (1 point)

Revenue should be recognized when

a.Cash is received from customers

b.customer purchase order is received

c.business wants to show profits

d.goods are sold or services are provided to customers

Question 14 (2 points)

Apple Inc. signed as agreement with Xperia Inc. to provide mobile testing services to the tune of $ 1million. Impact of this tranaction on business (on Apple Inc.) would be

a.Revenue increases by $ 1million

b.Cash increases by $ 1 million

c.Liability increases by $ 1million

d.no impact on business

Question 15 (1 point)

When supplies are purchased from vendor on a credit, the credit in journal entry would be given to

a.accounts receivable

b.cash

c.accounts payable

d.supplies

Question 16 (2 points)

Journal Entry for car purchased on credit would be

a.Car Account Debit and Cash Account Credit

b.Cash A/c debit and Car account Credit

c.Car A/c Debit and Accounts Payable A/c Credit

d.Accounts Payable a/c debit and Cash a/c credit