1.

The statues and garden decorations in the warehouse belonging to Woodmans Flowers and Gifts are considered which of the following?

• Expenses

• Profits

• Assets

• Equity

2.

Which one of the following statements is true regarding permanent accounts?

• They are associated with one product for the life of the product.

• They are associated with financial transactions for the life of the company.

• They track specific assets during an exact fiscal timeframe.

• They document resources for longer than one fiscal timeframe.

3.

Which of the following is a violation of the Sarbanes-Oxley Act?

• Not reporting financial information about a business

• Giving shares of stock to employees

• Declaring bankruptcy

• Merging with a competitor

4.

Who is credited with documenting the double-entry accounting system?

• Rocca Giovanni

• Arlo Gian

• Luca Pacioli

• Marco Lorenzo

5.

Which of the following groups of accounts have a natural credit balance?

• Expenses, liabilities and equity

• Assets, revenue and equity

• Liabilities, assets and revenue

• Liabilities, equity and revenue.