The principle that requires every business to be accounted for separately and distinctly from its owner(s) is known as the a. Objectivity principle. b. Business entity principle. c. Going-concern principle. d. Revenue recognition principle. e. Cost principle. 1. The rule that (1) requires revenue to be recognized at the time it is eamed, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services, is called the a. Going-concern principle. b. Cost principle. c. Revenue recognition principle d. Objectivity principle. e. Business entity principle. 2. 3. Which of the following accounting principles would require that all goods and services purchased are recorded at cost? a. Going-concern principle b. Continuing-concern principle c. Cost principle d. Business entity principle e. Consideration principle 4 Net income a. Decreases equity. b. Represents the amount of assets owners put into a business. c. Equals assets minus liabilities. d. Is the excess of revenues over expenses. e. Represents owners' claims against assets. An account used to record the owner's investments in the business is called a(n) 5. Withdrawals account. b. Capital account. c. Revenue account. d. Expense account. e. Liability account. a 6 Unearned revenues are a. Revenues that have been earned and received in cash. b. Revenues that have been earned but not vet collected in cash. c. Liabilities created when a customer pays in advance for products or services before the revenue is eamed. d. Recorded as an asset in the accounting records e Increases to owner's equity 7. Which of the following statements is INCORRECT