19) Regarding liabilities, which of the following statements is incorrect? A) A creditor who has loaned money to a business has a claim to some of the until the business pays the debt. B) Liabilities represent or of the two claims to set C) Many, but not all liabilities have the word payable in their titles onomic resources that are expected to benefit the business in the future 20) Which of the following is the correct order of preparation of financial statements? A Income statement statement of owners and statement of cash B) Balance sheet -- income statement statement of owner's equity statement of cash flows C) Statement of owner's equity -- balance sheet Income statement statement of cash flows D) Balance sheet statement of owner's equity Income statement statement of cash flows 21) The owner's capital account increases with A) net loss of the business B) the owner's contributions of cash and other assets the purchase of plant assets Di the owner's withdrawals of cash 22) 22) Maxwell Plumbing Services earned $500 by completing a job for Smith Company. The 5500 eamed by Maxwell Plumbing Services is its A) revenue B) debt C) gain D) expense 23) The owner's capital account decreases with A) net income C) the owner's withdrawals B) the owner's contributions D) the purchase of long-term assets 24) 24) Stuart Allen Company manufactures computer hardware. The president of the company bought a new car as a gift for his daughter and paid for it using cash from the business. Since the company paid for the car, it was recorded in its books as an asset. Which of the following concepts or principles of accounting did the company violate? A) cost principle B) monetary unit assumption C) economic entity assumption D) going concern assumption 25) A debt that a business owes is called A) a liability B) revenue D) owner's equity C) an asset 26) Which of the following is the correct accounting equation? A) Assets +Liabilities - Equity B) Assets Liabilities - Equity C) Assets + Revenues Liabilities. Expenses D) Assets Revenues = Equity