1. GAAP refers to: General Accounting Assistance Program b. Generally Accepted Accounting Principles c. Generally Acceptable Account Procedures d. Generally Accepted Accounting Processes 2. One purpose of GAAP is to provide between accounting periods. a. Relativity b. Compression c. Comparability d. Collaboration 3. When Capital is increased in the Double-Entry Method of accounting, the result is: a. A debit b. A credit c. Not enough information to determine d. None of the above 4. The purpose of the Trial Balance is to: a. Check the solvency of the company b. Identify credits and debits c. Find misclassified transactions d. Verify that credits equal debits 5. An example of Cash is: a. Accounts Receivables b. Notes Receivables c. Certificate of Deposit d. Stock Certificates 6. The accounting equation is: a. Debits = Credits b. Assets = Liabilities + Owner's Equity c. Revenues = Cost of Goods Sold - Gross Margin d. Assets = Expenses + Net Income 7. A Revenue account: a. Increases on the Credit Side b. Closes at the end of the accounting period c. Is an Income Statement Account d. All of the Above 8. Which of the following items would not fall under the definition of an Asset? a. Land b. Cash c. Machinery d. Note Payables 9. The Fusion Company recently obtained a Loan of $735,900 from TBB Bank. What is the effect on Assets and Liabilities? a. Reduce Bank & Reduce Loan b. Reduce Bank & Increase Loan c. Increase Bank & Increase Loan d. Increase Loan & Increase Expense 10. Which of the following statement is correct? a. When assets increase, are credited b. When assets increase, are debited and credited c. When assets increase, are not entered in the books d. When assets increase, are debited