Question 2 _(2 marks) Instructions: Designate the best answer for each of the following questions, Justify your selection with a logical argument, (0.5 mark for each) 1. The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the a. economic entity assumption. b. historical cost principle. c. both the historical cost principle and the fair value principle d. none of the above II 2. After a business transaction has been analyzed and entered in a journal, the next step in the recording process is to transfer the information to a. owner's equity. b. the company's bank c. financial statements d. none of the above Page 4 of 9 3. A debit will increase a. accounts payable; owner's capital b. accounts receivable; accounts payable c. revenues; accounts payable d. owner's drawings; prepaid insurance = 4. "FASB" refers to a. Financial Accounting Standards Board. b. Financial Auditing Standards Body c. Financial Accounting Statement Basis a. None of the above