12. Which principle states that any costs associated with doing business should be recorded in the same period as the revenue that those costs help generate? a. Revenue recognition principle b. Matching principle c. Finance principle d. Accrual principle 13. What is the goal of the Balance Sheet? a. To list all the accounts that a company has and their balances after adjustments have been made b. To indicate how much a company made or lost in a given time period c. To demonstrate that a company's total assets equal the sum of its total liabilities and owners' equity d. To show how much money that a company made in a given time period was retained and reinvested in the company 14. Which of the following items would not fall under the definition of an asset? a. Land b. Machinery c. Owners' Equity d. Cash 15. Which one of the following items would fall under the definition of a liability? a. Cash b. Owners' Equity c. Taxes Owed d. None of the above 16. Which of the following statements are false? a. A liability is a debt for your business b. The accounting equation shows how much of your assets belong to the owner, a how much belong to people outside the business c. If an item does not have future economic benefits, it should not be kept as an as d. None of the above 17. A business has the following items in it: - Land $1,000,000 - Machinery $20,000 - Cash $10,000 - Debt $0 - Owners' Equity? What is the value of Owners' Equity? a. $1,000,000 b. $1,020,000 c. $1,010,000 d. $1,030,000