1. The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:
   1. A debit to an asset. B) A debit to a liability.

C) A credit to a liability. D) A credit to an asset.

Sales revenue	$350,000
Accounts receivable	$280,000
Ending inventory	$230,000
Cost of goods sold	$180,000
Sales returns	$50,000
Sales discount	$20,000

32) Given the information in the above table, what is the company's gross profit?

A) $100,000. B) $50,000. C) $170,000. D) $280,000.

33. THIS year a company made an error in its ending inventory
    1. Neither this year's Balance Sheet nor Income Statement will be wrong
    2. This year's Balance Sheet will be correct but the Income Statement will be wrong
    3. This year's Balance Sheet will be wrong but the Income Statement will be correct
    4. Both this year's Balance Sheet and Income Statement will be wrong

34. Which of the following are made BEFORE a Trial Balance is prepared?
    1. Closing Entries B) Transaction Entries C) Adjusting Entries

35. If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
    1. Either plan B) Defined Benefit Plan

C) Neither Plan D) Defined Contribution Plan