QUESTION 31 The rule that requires revenue to be recognized when (1) goods or services are provided to customers and (2) at the amount expected to be received from the customer is called the: Going-concern assumption. Measurement (Cost) principle. Revenue recognition principle. Objectivity principle. Business entity assumption. QUESTION 32 On July 1 of the current calendar year, Olive Company paid $8,400 cash for management services to be performed over a two-year period beginning July 11 The adjusting entry on December 31 of the current year for Olive would include: A debit to an expense and a credit to a prepaid expense for $6,300. A debit to an expense and a credit to a prepaid expense for $2,100. A debit to a prepaid expense and a credit to an expense for $2,100. A credit to a liability and a debit to a prepaid expense for $2,100. A debit to a prepaid expense and a credit to Cash for $6,300. QUESTION 33 Which of the following is not accomplished by accounting? O Communicates business activities. Identifies business activities. Eliminates the need for interpreting financial data. Records business activities. Helps people make better decisions.