Circla the comect answer 1. Assets are customarily presented in the balance sheet: a, on the basis of cost beeause cost is usually factual and capable of being verified. b. on the basis of current fair market values established by independent appraisers a, on the basis of what it would cost to replace the asset. d. on the basis of cost because, in the event of liquidation, the assets would probably not sell for more than their cost. 2. The payment of a business debt a. increases total liabilities b. decreases the ownership equity in the business. o, increases the ownership equity in the business. d. decreases total assets J. If a transaction causes an asset account to increase, which of the following related effects may occur? a. a decrease of equal amount in an owner's equity account b. an increase of equal amount in another asset account. o. an increase in a liability account d. a decrease of equal amount in a liability account. . The foll owing are all elements of the accounting cycle but are listed in random order rather than in their normal sequence. a. closing entries b. adjusting entries c. financial statements. d. work sheet o. posting to accounts f journalizing If these steps wero arranged in appropriate order, which step would be the third one to be performed? 5. The concept of matching costs and revenue means that: a. gross profit on sales equals revenue minus expenses b. the expenses offset against revenue should relate to the samo timo period. c. revenue is at least as great as expenses d.revenuo and expenses are equal