Accounting periods should be of equal length to facilitate comparisons between periods.

a. True

b. False

Which of the following is an example of an operating activity?

a. Selling goods and services to customers

b. Purchasing equipment

c. Selling land

d. Obtaining capital from owners

Which of the following accounts is increased with a debit?

a. Prepaid Insurance

b. Jim Webb, Capital

c. Service Revenue

d. Rent Payable

The owner's Capital, Withdrawals, and Income Summary accounts for Laurel Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:

	Fran Laurel, Capital								Fran Laurel, Withdrawals
	12/31		200		1/1		2,000		3/1		50		12/31		200
					12/31		400		6/1		50
									9/1		50
									12/31		50
	Income Summary
	12/31		500		12/31		900
	12/31		400

The total amount of expenses for the period is

a. $200.

b. $900.

c. $500.

d. $400.