8 8. Which account increases equity? a. Expenses b. Withdrawals c. Treasury Stock d. Revenues 9. The accounting cycle begins by recording -------- in the form of journal entries. a. Business Transactions b. Financial Information C. Corporate Minutes d. Business contracts 10. After a business transaction has occurred, journal entries are recorded in the: a. General Ledger b. General Journal C. Expense Accounts d. Balance Sheet 11. Once journal entries are recorded, they can be posted to: a. General Journals b. Ledger Accounts Income Statements C. d. Expense Reports 12. Which is the most likely purpose of budgeting? a. Planning and control of an organization's income and expenses b. Preparation of a five-year business plan c. Company valuation d. Assess the non-financial performance of an organization 4

8. Which account increases equity? a. Expenses b. Withdrawals c. Treasury Stock d. Revenues 9. The accounting cycle begins by recording a. Business Transactions in the form of journal entries. b. Financial Information c. Corporate Minutes d. Business contracts 10. After a business transaction has occurred, journal entries are recorded in the: a. General Ledger b. General Journal c. Expense Accounts d. Balance Sheet 11. Once journal entries are recorded, they can be posted to: a. General Journals b. Ledger Accounts c. Income Statements d. Expense Reports 12. Which is the most likely purpose of budgeting? a. Planning and control of an organization's income and expenses b. Preparation of a five-year business plan c. Company valuation d. Assess the non-financial performance of an organization