1. The accounting process is correctly sequenced as: A. identifying, communicating, recording and summarizing. B. recording, communicating, identifying and summarizing. C. recording, classifying, summarizing, and communicating. D. communicating, recording, identifying and summarizing. 2. The assumption that the unit of measure remains sufficiently constant over time is part of the: A. monetary unit assumption. B. economic entity assumption. C. historical cost principle. D. periodic reporting principle. 3. The understatement of the ending inventoy balance causes: A. cost of goods sold to be overstated and net income to be understated. B. cost of goods sold to be overstated and net income to be overstated. C. cost of goods sold to be understated and net income to be understated. D. cost of goods sold to be understated and net income to be overstated. 4. The economic entity assumption requires that the activities: A. of an entity be kept separate from the activities of its owner. B. of different entities can be combined if all the entities are corporations. c. must be reported to the Securities and Exchange Commission. D. of a sole proprietorship cannot be distinguished from the personal economic events of its owners