Which of the following items would not be classified as cash equivalents?

a. U.S. Treasury bills.

b. Trading securities.

c. Commercial paper.

d. Money market funds.

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Which of the following is not a condition that must be met for an item to be recorded as revenue?

a. Revenues must be earned.

b. The amount of the revenue must be measurable.

c. The revenue must be received in cash.

d. The costs of generating the revenue can be determined.

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How are revenues and expenses recognized under the accrual basis of accounting?

a. Revenues are recognized when cash is received and expenses are recognized when cash is paid.

b. Revenues and expenses are recognized equally over a twelve month period.

c. Revenues and expenses are recognized based on the choices of management.

d. Revenues are recognized in the accounting period when the sale is made and expenses are recognized in the period in which they relate to the sale of the product.