Fina Exam 2 Multiple choioe The three forms of business entities are organizations philanthropic b. Financing, investing, and operating corporations and d. Sole manufacturer, and retailer Wholesaler 2. Which one of the following adjustments decreases not income for the period a. Recognition of on assets cash b. of interest on a note receivable customers but the c, Recognition of services that had been provided to not yet been roceived received in advance from d. Recognition of rent as earned that had been customers 3. Which one of the following adjustments increases net income lor the period? a. Recognition of the amount of supplies b. Recognition of interest on a note receivable. employees. advance. c. of wages but not paid to in d. Recognition of rent costs that had been paid to the landlord 4. Which of the following is an organization that lends funds to a business entity and expec repayment of the funds? C. An owner d. A creditor a. A b. A stockholder 5. Income statement accounts are also known as which of the following? c. Acutal accounts a. Temporaty accounts d. Both a and b b. Permanent accounts 6. Which one of the following is the last step in the accounting cycle? a. Journalizing business transactions b. Recording and posting adjustments c. Closing the accounts d. Preparing financial statements 7. version of an account which is useful for analyzing the effect transactions is the c. T account d. trial balance a. chart of accounts b. double entry system