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.
   2. A debit to a liability.
   3. A credit to a liability.
   4. A credit to an asset.
2. Which of the following are made BEFORE a Trial Balance is prepared?
   1. Closing Entries B) Transaction Entries C) Adjusting Entries
3. If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
   1. Either plan
   2. Defined Benefit Plan
   3. Neither Plan
   4. Defined Contribution Plan
4. If you put $200 into a savings account that pays annual compound interest of 8% per year and then withdraw the money two years later, you will earn interest of $32.
   1. False
   2. True
5. In the Allowance Method when we we collect on a previously written off receivable
   1. Assets stay the same, Net Income stays the same.
   2. Assets decrease, Net Income decreases
   3. Assets increase, Net Income increases.
   4. It depends
6. When intangible assets, like franchises or patents, die, it is called
   1. Amortization
   2. Depletion
   3. Depreciation
   4. Impairment
7. The market will generally react to dividends on which day?
   1. Declaration Date
   2. Payment Date
   3. Record Date
8. Define Solvency
   1. Ability to pay Current Debt
   2. Ability to generate free cash flow from operations
   3. Ability to pay both Current and Long Term Debt
   4. Ability to pay Long Term Debt
9. The abbreviation of the rules an accountant has to follow when doing financial statement analysis is:
   1. None of these
   2. FASB
   3. GAAP
   4. IFRS
10. What is expensed in a factory?
    1. Period Costs
    2. Everything
    3. Product Costs
    4. Nothing
11. ABC's sales equal $60,000 and cost of goods sold equals $20,000. Its beginning inventory was $1,600 and its ending inventory is $2,400. ABC's inventory turnover ratio equals:
12. 1. 5 times.
    2. 30 times.
    3. 10 times.
    4. 20 times.
13. ABC has beginning inventory for the year of $18,000. During the year, ABC purchases inventory for $230,000 and has cost of goods sold equal to $233,000. ABC's ending inventory equals: A) $19,000. B) $18,000. C) $15,000. D) $21,000.
14. Which of the following is possible for a particular business transaction?
    1. Decrease assets; Increase assets
    2. Increase assets; Decrease liabilities
    3. Decrease assets; Increase stockholders' equity
    4. Decrease liabilities; Increase expenses