Multiple Questions Answers

1.  Cash collected from the customers before goods are delivered is known as_____.
a. unearned revenue
b. deferred revenue
c. advances from customers
d. all of these answers are correct

2. The _____ is (are) largely responsible for developing generally accepted accounting principles in the United States.
a. FASB
b. IASC
c. SEC
d. FASB and IASC

3. The _____ would result in an increase in income under the cash basis but not an increase in income under the accrual basis.
a. credit sale of inventory at a sales price in excess of the inventory's cost
b. cash collection from a credit customer
c. cash sale of inventory at a sales price in excess of the inventory's cost
d. return of defective inventory purchased on account to a supplier where a full credit was given

4._____ is reported on the financial statements of publicly held companies in the
United States.
a. The current ratio
b. Earnings per share
c. The price-earnings ratio
d. All of these answers are correct