MULTIPLE CHOICES (7 marks; % marks each) Circle the correct answer to each question 1. The revenue recognition principle dictates that revenue should be recognized in the accounting records a. when cash is received. b. when the performance obligation is satisfied. c. at the end of the month. d. in the period that income taxes are paid. 2. The temporary account balances ultimately wind up in what account? a. Income Summary b. Retained Earnings. c. Share Capital-Ordinary d. Comprehensive Income 3. An account will have a credit balance if the a. credits exceed the debits b. first transaction entered was a credit. e. debits exceed the credits d. last transaction entered was a credit. 4. Transactions in a journal are initially recorded in a, account number order. b. dollar amount order e. alphabetical order. d. chronological order. 5. The historical cost principle requires that companies record assets at their a. appraisal value b. cost c. market price. d. list price i) Excellent Company uses a perpetual inventory system. During May, the following transactions and events occurred. May 13 Excellent Company sold 12 motors at a price of $40 each to XYZ Company, terms May 16 XYZ Company returned two defective motors to Excellent. May 23 Excellent Company received payment in full from XYZ. Instruction: Journalize the above transactions (4 marks) 1/10, n/30. The motors cost Excellent $25 each