accounting

1. (LO 1) Which of the following is not a step in the accounting process? n. Identification c. Recording h. Economic entity d. Communication 2. (10 1) Which of the following statements about users of account- ing information is Incorrect? a. Management is an internal user. b. Taxing authorities are external users C. Present creditors are external users d. Regulatory authorities are internal users. 3. (LO 2) The historical cost principle states that n. assets should be initially recorded at cost and adjusted when the fair value changes b. activities of an entity are to be kept separate and distinct from its owner c. assets should be recorded at their cost. d. only transaction data capable of being expressed in terms of money be included in the accounting records. 4 (LO 2) Which of the following statements about basic assump- tions is correct? a. Basic assumptions are the same as accounting principles. b. The economic entity assumption states that there should be a particular unit of accountability. e. The monetary unit assumption enables accounting to mea- sure employee morale. d. Partnerships are not economic entities. 5. (LO 2) The three types of business entities are: z. proprietorships. small businesses, and partnerships. b. proprietorships, partnerships, and corporations. c. proprietorships, partnerships, and large businesses. d. financial, manufacturing, and service companies. 6. (LO 3) Net income will result during a time period when a. assets exceed liabilities. b. assets exceed revenues. C. expenses exceed revenues. d. revenues exceed expenses 7. (LO 3) As of December 31, 2020, Kent Company has assets of $3.500 and owner's equity of $2,000. What are the liabilities for Kent Company as of December 31, 2020