Question 40 (2 points) What kind of account is Unearned Sales Revenue A liability account A contra-stockholders equity account O A revenue account A contra revenue account Question 41 (2 points) Why has the FASB financial standard setting process worked better than the prior efforts by the Accounting Principles Board and the Committee on Accounting Procedures? The FASB is funded by Congress, The APB and CAP were funded by the AICPA. The FASB has the power to levy fines: The APB and CAP did not. The FASB seems more transparent and objective because they provide opportunities for feedback before standards become finalized and the Board members have resigned from their jobs as auditors. The FASB Board members are ratified by Congress rather than being appointed by the ABP and CAP. Question 42 (2 points) Which of the following items would appear closest to the top of the page on a Classified Income Statement? Discontinued Operations Operating Income Gross Margin Cost of Goods Sold