MULTIPLE CHOICE QUESTIONS (4p): Select one correct answer. 1. Which of the following items is more associated with the balance sheet than the income statement? a. Cost of Goods Sold b. Expenses c. Revenue d. Accounts Receivable 2. Which of the following is an accounting equation? a. Assets Liabilities - Equity b. Cost of Goods Sold + Ending Inventory = Cost of Goods Available for Sale c. Assets Liabilities + Equity d. Revenue-Expenses = Net Income 3. When is revenue generally recognized? a. When cash is received b. When production is complete c. When the sale performance obligation is satisfied d. When the account receivable is paid off 4. Which of the following components is not required as part of financial statements? a. Balance Sheet b. Income Statement c. Notes to financial statements d. President's letter to shareholders 5. Which of the following characteristics refers to having information available to decision-makers in time, before it loses its capacity to influence decisions? a. Timeliness b. Verifiability c. Comparability d. Understandability 6. What does it mean when accounting information is faithfully representative? a. It means that all the information is provided b. It means that the numbers and descriptions match what really existed or happened c. It means that information is not selected in favor of one party or another d. It means that information does not contain errors 1