1. Managerial accounting provides financial information to

a	investors.

b	creditors.

c.

managers.

d.	the Internal Revenue Service.

2. A basic assumption of accounting assumes that requires that companies include in the accounting records only transaction data that can be expressed in monetary terms is referred to as the

a.	historical cost principle.

b.	monetary unit assumption.

c.	economic entity assumption.

d.	fair value principle.

3. Owners equity is equal to

a.	assets minus revenues.

b.	revenues minus expenses.

c.	assets minus liabilities.

d.	assets plus liabilities.

4.Payment of accounts payable

a.	increases assets and decreases liabilities.

b.	decreases assets and increases owners equity.

c.	decreases owners equity and decreases liabilities.

d.	decreases assets and decreases liabilities.

5.The investment of cash by the owner

a.	decreases assets.

b.	decreases expenses.

c.	increases revenues.

d.	increases owner's equity.

6.The investment of cash by the owner

a.	decreases assets.

b.	decreases expenses.

c.	increases revenues.

d.	increases owner's equity.

7.A balance sheets shows

a.	assets, liabilities, and owners equity at a certain point in time.

b.	revenues and expenses over a period of time.

c.	revenues and expenses at a certain point in time.

d.	assets, liabilities, and owners equity over a period of time.

8.

The ending owner's equity amount is shown on the

a.	balance sheet only.

b.	owner's equity statement only.

c.	statement of cash flows only.

d.	both the balance sheet and the owner's equity statement.

9.Accounts that normally have debit balances are

a.	assets, liabilities, and owners drawings.

b.	assets, owners drawings, and expenses.

c.	assets, expenses, and revenues.

d.	assets, expenses, and owners capital.

10.A debit is not the normal balance for which of the following?

a.	Expense account

b.	Owners Capital account

c.	Asset account

d.	Owners drawings account