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Contemporary Approach to Management

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1. A list of assets, liabilities, and owners' equity as of a specific date is a (n) (Points: 4)

Balance sheet

2. Which principle determines the amount initially entered into the records for purchases (Points: 4) Cost principle 3. The "rules" of accounting are called (Points: 4)

Generally Accepted Accounting Principals 4. The portion of a corporation's net income retained in the business is called (Points: 4)

Retained Earnings 5. Brennan, Inc. had revenues of $234,000, expenses of $175,000, and dividends of $40,000 during 2009. Which of the following statements is correct? (Points: 4)

Net income for 2009 totaled $59,000 6. Which statement is normally prepared first? (Points: 4) Income statement

7. The resources a business owns are called (Points: 4) assets 8. Which of the following is not a characteristic of a corporation (Points: 4)

Corporations make up 20% of all businesses.

9. An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a (Points: 4)

Governmental Unit

10. Which of the following is NOT an element of the financial accounting system? (Points: 4) A set of rules for the stock exchange Controls to determine whether errors occur during recording

11. The basic financial statements do NOT include the (Points: 4)

tax return.

12. In October, cash is received in advance of rendering services. Assuming that half of the services have been performed by December 31, the year-end adjustment would (Points: 4) Decrease Unearned Service Revenue and increase Service Revenue.

13. Fees receivable would appear on the balance sheet as a(n) (Points: 4) asset

14. A&M Co. purchased land for $50,000 with $10,000 paid

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