1) The accounting principle that dictates when expenses should be recorded is called the: a) Realization principle. b) Matching principle. c) Double entry accounting principle. d) None of the above. 2) Based on the following information, which statement indicates when the revenue should be recorded? a) Goods are ordered in September b) Goods are delivered in October. c) Goods are paid for in November. d) All of the above. 3) Which of the following statements is/are true? a) Debits are recorded on the left. b) Credits are recorded on the right. c) The total dollar amount of debits must be equal to the total dollar amount of credits. d) All of the above. 4) Which of the following statements is/are false? a) Debits decrease liability accounts. b) Debits decrease revenue accounts. c) Debits decrease asset accounts. d) All of the above. 5) Based on the following information, which statement(s) indicates when the expense should be recorded? a) Salaries are earned in December, but not paid until January b) Salaries are not earned in December, but are paid in advance in December. c) Salaries are earned and paid in December. d) Both a and c. 6) The first three steps in the accounting cycle are: a) Post transactions to the ledger, record transactions in the journal, prepare the trial balance. b) Post transactions to the ledger, prepare the trial balance, record transactions in the journal. c) Record transactions in the journal, post transaction to the ledger, prepare the trial balance. d) None of the above. Page Two 1