1. Which of the following statements about the Accounting Cycle is false? a) It includes the preparation of financial statements. b)It covers unspecified time periods. c)It focuses on business transactions of a company. d)It is an established and systematic process involving a series of steps.

2. Which of the following statements about business transactions is true? a.They are not recorded. b.They do not affect accounts. c.They are expressed in percentages. d.They must involve a valid business activity.

3.True or False? The first line in a journal entry is the account that is being credited. a.True b.False

4.How is the following journal entry recorded? Purchase $1000 of inventory with cash. a.Debit Inventory $1000 and Credit Accounts Receivable $1000 b.Debit Accounts Receivable $1000 and Credit Inventory $1000 c.Debit Inventory $1000 and Credit Cash $1000 d.Debit Cash $1000 and Credit Inventory $1000

5. Assume a company sold services for $10,000 cash. How does this transaction impact the accounting equation? aAssets increase by $10,000 and liabilities increases by $10,000. bAssets increase by $10,000 and equity increases by $10,000. cLiabilities increase by $10,000 and equity increases by $10,000. dAssets increase by $10,000 and assets decrease by $10,000. True or False? Some T-accounts only have left sides. aTrue bFalse

6. Which of the following options has a normal credit balance? aRevenues bAssets cDividents dExpenses The T-account for Cash has the following transactions: Cash sales of $90,000, purchase of equipment for $20,000 cash, and cash payment of rent for $3,000.

7.What is the ending balance in the Cash T-Account? a$67,000 debit balance b$107,000 credit balance c$107,000 debit balance d$67,000 credit balance

8.True or False? Accounts are recorded on the Trial balance in the following order: Liabilities, Shareholders' Equity, Dividends, Revenues, Expenses, and Assets. aTrue bFalse