1. Arthur Company has decided to release the company's financial statements every 16-months. The accounting concept that has been violated is the:

a) going-concern assumption

b) expense recognition principle

c) time period assumption

d) monetary measurement assumption

2. If a company pays advertising expenses on account, this would result in:

a) decrease in revenues and increase in liabilities

b) decrease in revenues and increase in expenses

c) increase in expenses and increase in liabilities

d) increase in liabilities and decrease in assets

3. A trial balance:

a) may balance even if a journal entry is incorrect

b) proves that a company has recorded all transactions

c) is prepared before posting to the general ledger

d) lists only equity accounts

4. Adjustments for accrued expenses:

a) Decrease assets and revenues

b) Have a liabilities and expense account relationship

c) Decrease liabilities and increase revenues

d) Have an assets and revenues account relationship

5. Adjustments for depreciation is :

a) increase and decrease assets

b) decrease revenue and increase assets

c) decrease assets and increase revenues

d) decrease assets and increase expenses