Which of the following is the most appropriate and modern definition of accounting? a) A means of recording transactions and keeping records b) The interconnected network of subsystems necessary to operate a business c) The measurement, processing, and communication of financial information about an identifiable economic entity. d) Electronic collection, organization, and communication of vast amounts of information. The economic entity assumption requires that a) tax records be kept separate from the financial reporting records. b) the personal assets and liabilities of an owner not be shown on the business's financial statements. c) transactions that involve an exchange of value be kept separate from those that do not. d) a separate set of books be established for each segment of a business. 3) Which of the following is not a satisfactory statement of the accounting equation? a) Assets - Owner's Equity - Liabilities b) Assets = Liabilities - Owner's Equity c) Assets -Liabilities - Owner's Equity d) Assets - Liabilities + Owner's Equity Under the accrual method of accounting revenues should be recorded when a) a contract is signed. b) they are earned. c) cash is received from the customer. d) work is begun on the job. Which of the following financial statements is concerned with the enterprise at a point in time? a) Balance Sheet b) Income Statement c) Statement of Retained Earnings d) Statement of Cash flows If Accounts Receivable has debit (dr.) postings of $58,000, credit (cr.) postings of $44,000, and a normal ending balance of $48,000, which of the following was its beginning balance? a) $62,000 Cr. b) $62,000 Dr. c) $34,000 Dr. d) $34,000 Cr. 7) If Accounts Payable has debit (dr.) postings of $8,500, credit (cr.) postings of $7,000, and a normal ending balance of $3,000, what was its beginning balance? a) $4,500 Cr. b) $1,500 Cr. c) $4,500 Dr. d) $1,500 Dr. Which of the following events does not require a journal entry? a) Purchase of a one-year insurance policy. b) Agreement to perform a service at a future date. c) Performance of a service agreed to at a past date. d) Payment for a service performed previously