1. Accumulated Depreciation:

a. increases liabilities.

b. increases assets.

c. decreases liabilities.

d. decreases assets.

2. Which one of the following is the last step in the accounting cycle?

a. Recording and posting adjustments

b. Closing the accounts

c. Preparing financial statements

d. Journalizing business transactions

3. Which one of the following steps in the accounting cycle is optional rather than required?

a. Work sheets are prepared

b. Adjustments are recorded

c. The accounts are closed

d. Business transactions are recorded