$1$ Multiple Choice. Choose the one alternative that best completes the statement or answers the question. $(30$ marks, $3$marks each$)$

$1\mathrm{.}1.$ If a business ceases operations and liquidates, which of the following will be paid last?

A$)$ Employees.

B$)$ Creditors who have collateral for their loans.

C$)$ Owners.

D$)$ General creditors.

$1\mathrm{.}2.$ The accounting principle that assumes that a company will operate in the foreseeable future is:

A$)$ Liquidity.

B$)$ Going concern.

C$)$ Disclosure.

D$)$ Objectivity.

$1\mathrm{.}3.$ The operating cycle:

A$)$ Starts with using cash to purchase merchandise and ends with collecting the cash back from customers.

B$)$ Is longer for a retailer than for a manufacturer.

C$)$ Is repeated once per year for manufacturers and merchandisers.

D$)$ Has seven steps.

$1\mathrm{.}4.$ Which of the following would not appear on an income statement?

A$)$ Repair service revenue.

B$)$ Net income.

C$)$ Insurance expense.

D$)$ Dividends $.$

$1\mathrm{.}5.$ Adjusting entries are prepared:

A$)$ Before financial statements and after a trial balance has been prepared.

B$)$ After posting but before a trial balance is prepared.

C$)$ After a trial balance has been prepared and after financial statements are prepared.

D$)$ Anytime an accountant sees fit to prepare the entries.