The primary external users of accounting information are investors and management.

a. True

b. False

The account 'Wages Payable' would appear on the income statement.

a. True
b. False

The balance sheet is also known as the statement of financial position.

a. True

b. False

The primary purpose of an expense is to generate revenue.

a. True

b. False

Use the following adjusted trial balance to answer the question below.

John's Jet Skis Adjusted Trial Balance December 31, 20x5
Cash	$ 25,000
Accounts Receivable	35,000
Supplies	15,000
Prepaid Insurance	25,000
Building	142,000
Accumulated Depreciation-Building		$ 30,000
Accounts Payable		60,000
John Clair, Capital		100,000
John Clair, Withdrawals	40,000
Jet Ski Rentals		192,000
Depreciation Expense-Building	10,000
Wages Expense	70,000
Insurance Expense	20,000	_______
	$382,000	$382,000

The entry to close the Jet Ski Rentals account is

a. Income Summary 192,000 Jet Ski Rentals 192,000

b. John Clair, Capital 192,000 Jet Ski Rentals 192,000

c. Jet Ski Rentals 192,000 John Clair, Withdrawals 192,000

d. Jet Ski Rentals 192,000 Income Summary 192,000

Which of the following is not a measurement issue in accounting?

a. Recognition.

b. Evaluation.

c. Classification.

d. Valuation.

The Income Summary account

a. appears on the balance sheet.

b. appears on the income statement.

c. is closed to the cash account to properly state cash at the end of the period.

d. does not appear in the financial statements.

For a T account, an account balance is the difference in total dollars between total debit footings and total credit footings.

a. True
b. False