Please give the answer and explanation to each question. Thanks a lot!

1. Costs that a business does not incur, or can reduce, if it discontinues an activity are known as:

   1. actual costs

   2. relevant costs

   3. incremental costs

   4. avoidable costs

2. Profit is not relevant when calculating:

   1. price/earnings ratio

   2. earning per share

   3. return on equity

   4. accounts receivable turnover

3. Which of the following statements is correct? The accrual principle means that:

   1. revenue is recorded in the income statement and balance sheet when cash is received

   2. revenue is recorded in the income statement when the cash is received

   3. revenue is recorded in the income statement at the time of transaction and not at the time the cash is received

   4. revenue is recorded in the income statement and balance sheet at the time of the transaction and not at the time the cash is received

4. GAAP provides rules for entities to follow when preparing financial statements which assist external users with:

   1. Interpreting bank statements

   2. Making comparisons between the financial information of different entities

   3. analyzing owners personal transactions

   4. Making comparisons between an entitys budgeted and actual results

5. The source documents for transactions show the value of the exchange in terms of money. This is known as:

   1. a source document

   2. the historical cost concept

   3. the monetary unit concept

   4. a transaction