GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 5

Question 13. Question :
Unearned revenue is reported on
the financial statements as:
A revenue on the balance sheet
A liability on the balance sheet
An unearned revenue on the income statement
An asset on the balance sheet
An operating activity on the statement of cash flows
Question 14. Question :
The length of time covered by a
set of periodic financial statements is referred to as the:
Fiscal cycle
Natural business year
Accounting period
Business cycle
Operating cycle
Question 15. Question :
On April 30, 2011, a three-year
insurance policy was purchased for $18,000 with coverage to
begin immediately. What is the amount of insurance expense
that would appear on the company's income statement for the
year ended December 31, 2011?
$500
$4,000
$6,000
$14,000
$18,000
Question 16. Question :
Based on the following
information, what would be the beginning balance in the
Retained Earnings Account, assuming all accounts have a
normal balance?
Cash $ 6,754
Dividends
$ 2,000
Accounts receivable $ 13,733
Consulting fees earned
$ 13,718