Revenues are

A. gross increases in stockholders' equity resulting from business activities.

B. the cost of assets consumed during the period.

C. the cost of services used during the period.

D. actual or expected cash outflows.

A balance sheet reports the assets and liabilities of a company for a specific period of time.

True

False

Which of the following is in accordance with generally accepted accounting principles?

A. Accrual-basis accounting

B. Cash-basis accounting

C.Both accrual-basis and cash-basis accounting

D. Neither accrual-basis nor cash-basis accounting

Which of the following is in accordance with generally accepted accounting principles?

A. Accrual-basis accounting

B. Cash-basis accounting

C. Both accrual-basis and cash-basis accounting

D. Neither accrual-basis nor cash-basis accounting

The balance in the supplies account on June 1 was $5190, supplies purchased during June were $3580, and the supplies on hand at June 30 were $3100. The amount to be used for the appropriate adjusting entry is

A. $5670.

B. $6680.

C. $3580.

D. $11870.

Sheffield Real Estate received a check for $27000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $27000. Financial statements will be prepared on July 31. Sheffield Real Estate should make the following adjusting entry on July 31:

A. Debit Rent Revenue, $4500; Credit Unearned Rent Revenue, $4500.

B. Debit Unearned Rent Revenue, $4500; Credit Rent Revenue, $4500.

C. Debit Unearned Rent Revenue, $27000; Credit Rent Revenue, $24000.

D. Debit Cash, $27000; Credit Rent Revenue, $27000.