Question 1 Profit is the difference between 2 pts assets and liabilities. C the incoming cash and outgoing cash. the assets purchased with cash contributed by the owner and the cash spent to operate the business. the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services. Question 2 Financial reports are used by which of the following? 2 pts Management Creditors Investors All of these choices 2 pts Question 3 Accounts do not reflect money amounts. are not used by entities that manufacture products, are records of increases and decreases in individual financial statement items. are only used by large entities with many transactions. 2 pts Question 4 A debit signifies a decrease in assets expenses drawing revenues Question 5 Prepaid expenses have 2 pts not yet been recorded as expenses but have been paid been recorded as expenses and paid been incurred and paid. not yet been recorded as expenses Question 6 2 pts The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry. Wages Expense 4.500 Wages Payable 4,500 7272222222222222 c Record payment of wages Record wages paid last month Record wages paid in advance Record wages expense incurred and to be paid next month 2 pts Question 7 The classified balance sheet will show which liability subsections? Current liabilities and long-term liabilities Current liabilities and other liabilities Other liabilities and long-term liabilities I Present liabilities and tomorrow's liabilities Question 8 Accumulated Depreciation appears on the 2 pts balance sheet in the current assets section balance sheet in the property, plant, and equipment section balance sheet in the long-term liabilities section income statement as an operating expense. Question 9 2 pts At the end of the month, the total of the amount column of the revenue journal is posted as a debit to Accounts Receivable and a credit to Cash debit to Accounts Receivable and a credit to Fees Earned. debit to Cash and a credit to Fees Earned debit to Cash and a credit to Accounts Payable. Question 10 A purchase of supplies for cash is recorded in the 2 pts revenue journal. purchases journal cash receipts journal. cash payments journal