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Accounting Midterm Exam Question 1 . Cash equivalents: Select one: a. Are readily convertible to a known cash amount. b. Include short-term investments purchased within 3 months of their maturity dates. c. Have a market value that is not sensitive to interest rate changes. d. Include short-term U.S. treasury bills. e. All of these. Question 2

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B 9 . B 11 .

Transactions involving the purchase and sale of (1) long-term resources such as land, buildings, equipment, and machinery, and (2) any resources not directly related to a company's normal operations. $ made that goes back into company to buy things needed.

Question 2 1.

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e. All of these. Question 2 1. Revenue accounts are closed to the Income Summary. Debit each Revenue account and credit Income Summary. 2. Expense accounts are closed to the Income Summary.

Apr 11, 2019 Multiple Choice 1 . B 3 . C 5 . A 7 . B 9 . B 11 . E 13 . A 15 . D 17 . A 19 . B Questions 1 . Answers will vary.

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Chapter 7 1.1.