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Question:Adjusting entries can be classified as

 

A

Postponements and     advances

 

B

Accruals and deferrals

 

C

Deferrals and     postponements

 

D

Accruals and     advances

 

2 Question:Daly Investments purchased an 18-month   insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance   sheet would report Prepaid Insurance of

 

A

$0 because Prepaid     Insurance is reported on the Income Statement

 

B

$1,400

 

C

$2,200

 

D

$3,600

 

3 Question:Daly Investments purchased an 18-month   insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance   sheet would report Prepaid Insurance of

 

A

$0 because Prepaid     Insurance is reported on the Income Statement

 

B

$1,400

 

C

$2,200

 

D

$3,600

 

4 Question:Southwestern City College sold season   tickets for the 2010 football season for $160,000. A total of 8 games will be   played during September, October and November. Assuming all the games are   played, the Unearned Revenue balance that will be reported on the December 31   balance sheet will be

 

A

$0

 

B

$60,000

 

C

$100,000

 

D

$160,000

 

5 Question:The operating cycle of a company is the   average time that is required to go from cash to

 

A

Sales in producing     revenues

 

B

Cash in producing revenues

 

C

Inventory in     producing revenues

 

D

Accounts     receivable in producing revenues

 

 

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