Scores I. Multiplo Choice Questions. ONLY ONE answer is oorrect. (1'X 20-20) limits the economic data in an accounting system to data related directly to the activities of the business. a. The cost concept c. The business entity concept b. The objective concept d. The partnership concept a increase in liability account b. increase in asset account c. increase in expense account d. decrease in equity account 3. Under the ...............-, revenues are reported in the earned. a. cash basis of accounting b. acrual basis of accounting c. adjusting processd. posting process 4. The following accounts are permanent accounts except a, wage expenses b. accounts receivable c. a accumulated depreciation d. supplies 5. When there are a large number of individual accounts with a common characteristic, it is a. creditors ledger b subsidiary ledger e. accounts payable ledger d. accounts recei 6. The income statement in which the total of all expenses is deducted from the total of all revenues is termed the a. multi-step form b. single-step form c. account form d. report form 7. The objectives of control over inventory are a. safeguarding the inventory from damage or theft b. reporting inventory in the financial statements c. using proper inventory cost method d. both a and b