10) The purpose of the accounting process is to provide financial information about 10)______

A) small businesses. B) large corporations.

C) sole proprietorships. D) All of these answers are correct.

11) The financial statement that shows business results in terms of revenue and expenses is 11) ______

A) the statement of cash flows. B) an income statement.

C) a balance sheet. D) a statement of owner's equity.

12) Which of the following is not a type of business organization? 12)______

A) Corporation B) Sole proprietorship

C) Partnership D) Operation

13) Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting

equation changes include: 13)______

A) Cash increases and Accounts Receivable decreases $12,000.

B) Cash and Capital increase, $12,000.

C) Cash and Revenue increase $12,000.

D) Accounts Receivable decreases and Capital increases $12,000.

14) The beginning balance in Cash was $400. Additional cash of $800 was received.

Cheques were written for $700. The Cash balance is 14)______

A) $900. B) $800. C) $700. D) $500.

15) The process that begins with recording business transactions and includes the completion of the financial statements is the 15) _____

A) natural business years. B) calendar year.

C) fiscal year. D) accounting cycle.

16) The first step of the accounting cycle is 16) ______

A) preparing a trial balance. B) analyzing business transactions.

C) posting to the ledger. D) recording journal entries.

17) If an error in a journal entry is detected after posting, you should 17) ______

A) make a correcting entry. B) erase the incorrect entry.

C) do nothing in hopes it will go away. D) initial where the error was made.