1.)External users are those within an organization who use financial information to make day-to-day decision.

Group of answer choices

True

False

2)The four basic financial statements are Income Statement, Statement of Owner's Equity, Balance Sheet and the Chart of Accounts.

Group of answer choices

True

False

3)Generally Accepted Accounting Principles (GAAP) are accounting principles, assumptions, concepts (the rules) that guide the preparation and presentation of financial statements.

Group of answer choices

True

False

4)In double-entry bookkeeping, at least four accounts are involved.

Group of answer choices

True

False

5)Normal balance of the account is the side that it increases on.

Group of answer choices

True

False

6)The accounting concept that requires a business to only report activities on the financial statements that are specifically related to company operations, not those activities that affect the owner personally is known as the:

Group of answer choices

Cost principle

Gong-concern assumption

Time-period assumption

Separate Entity Concept

7)The accounting assumption that assumes a business will continue to operate in the foreseeable future (12 months) is the:

Group of answer choices

Going Concern Assumption

Cost Principle.

Revenue Recognition Principle

Time Period Assumption

8)Identify the account below that is classified as an asset account:

Group of answer choices

Unearned Revenue

Accounts Receivable

Common Stock

Accounts Payable

9)A debit is used to record an increase in all of the following accounts except:

Group of answer choices

Utilities Expense

Cash

Accounts Payable

Prepaid Insurance

10)If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:

Group of answer choices

Debit Unearned Legal Fees and credit Accounts Receivable

Debit Cash and credit Legal Fees Earned

Debit Cash and credit Unearned Legal Fees

Debit Unearned Leagl Fees and credit Legal Fees Earned

11)

Revenue Recognition Principle says that revenue is recognized when:

Group of answer choices

it is earned

cash is received

a deposit is made for future work

we owe another company