Reference no: EM132671159

Problem 1: An accrued revenue represents:

Multiple Choice

Option 1: Customers paying cash in advance of the good or service to be provided.

Option 2: Revenue being recorded prior to cash collection from the customer.

Option 3: Revenue being recorded at the same time the cash is collected from the customer.

Option 4: Cash being collected from the customer prior to the revenue being recorded.

Problem 2: Current assets include:

Multiple Choice

Option 1: Assets that must be paid for within 12 months.

Option 2: Assets that will be used up or converted to cash within 12 months.

Option 3: Assets that will be used for many years.

Option 4: Any assets that were purchased for cash.

Problem 3: The closing process includes which of the following?

Multiple Choice

Option 1: Closing the balance of the retained earnings account to zero.

Option 2: Closing the balance of only the dividends account to zero.

Option 3: Closing the balances of only revenue and expense accounts to zero.

Option 4: Closing the balances of revenue, expense and dividend accounts to zero.