1. Regency paid $7,200 to renew its property insurance policy for one year on April 1, 2014, the effective date of the policy. What amounts should be reported for prepaid insurance and insurance expense in Regencys financial statements for the period ending December 31, 2014?

	Prepaid Insurance	Insurance Expense
a	$7,000	$300
b	$1,800	$5,400
c	$5,400	$1,800
d	$7,200	$300

2. On the first day of each month beginning January 1, 2015, Regency receives from Publix Inc. an escrow payment of $2,500 for their share of 2015 real estate tax expense. Regency records the $2,500 in a revenue account monthly. Publix's share of 2015 real estate tax expense is $28,000. On December 31, 2015, what amount should Regency show as an escrow liability to Publix?

a	$2,500
b	$30,000
c	$2,000
d	$28,000

3. Which of the following expenditures qualifies for asset capitalization under U.S. GAAP?

a	Costs of purchasing security for a special event.
b	Cost of replacing a roof at a property.
c	Any single expense greater than $1,000.
d	The cost of annual Holiday lighting.

4. What is accrual accounting?

a	Revenue is recognized when payments are received and expenses are recognized when incurred.
b	Revenue is recognized when earned and expenses are recognized quarterly, when paid.
c	Revenue is recognized when payments are received and recognized monthly, when paid.
d	Revenue is recognized when earned and expenses are recognized when incurred.

5. Which of the following costs incurred in connection with an HVAC system purchased for use in the common area of a shopping center would be capitalized?

	Installation Costs	Monthly Maint. of HVAC system
A	No	No
b	Yes	No
c	No	Yes
d	Yes	Yes

6. When should a lessor recognize the expense for a nonrefundable leasing commission paid by lessor to a 3^rd party upon signing a lease?

a	Over the life of the lease.
b	At the inception of the lease.
c	At the expiration of the lease.
d	When paid.

7. Regency bills and receives rent payments from tenants for the following years:

	2014 Rent Received	2015 Rent Received	2016 Rent Received
2014 Rent Billed	$95,000	$120,000
2015 Rent Billed		$200,000	$75,000
2016 Rent Billed		$50,000	$225,000

What is the accrualbased revenue for 2015?

a	$275,000
b	$320,000
c	$370,000
d	$200,000

8. Irrigation expense has a 30 day, noncalendar month billing cycle. As of May month end, irrigation expense through 5/30/2018 has been incurred, however, expense through 3/15/2018 has been recognized in the General Ledger. How many months of irrigation expense should be accrued to reflect incurred expense through May?

a	5 months
b	3 months
c	2.5 months
d	2 months