$1.\_\_\_\_\_\_\_\_$ are items owed to a creditor. $\_\_\_\_\_\_\_\_$ are items owned by a company. $\_\_\_\_\_\_\_\_$ represents owners' claims to company resources.

Expenses; Revenues; Net income

Expenses; Revenues; Stockholders$$ equity

Liabilities; Assets; Stockholders' equity

Liabilities; Assets; Net income

$2.$ Under $\_\_\_\_\_\_\_\_$ accounting, revenues are recorded when earned and expenses are recorded with related revenues. Under $\_\_\_\_\_\_\_\_$ accounting, revenues are recorded when cash is received and expenses are recorded when cash is paid out. Financial statements are prepared using $\_\_\_\_\_\_\_\_$ accounting.

cash$-$basis; accrual$-$basis; accrual$-$basis

cash$-$basis; accrual$-$basis; cash$-$basis

accrual$-$basis; cash$-$basis; cash$-$basis

accrual$-$basis; cash$-$basis; accrual$-$basis

$3.$ The $\_\_\_\_\_\_\_\_$ retains the power and authority to set accounting standards. Currently, this responsibility has been delegated to the$\_\_\_\_\_\_\_\_.$

Securities and Exchange Commission; International Accounting Standards Board

International Accounting Standards Board; Financial Accounting Standards Board

Securities and Exchange Commission; Financial Accounting Standards Board

Financial Accounting Standards Board; Securities and Exchange Commission

$4.$ In what order are the four primary financial statements prepared?

Statement of stockholders' equity $>$ Income statement $>$ Balance sheet $>$ Statement of cash flows

Balance sheet$>$ Income statement $>$ Statement of cash flows$>$ Statement of stockholders' equity

Income statement $>$ Statement of stockholders' equity $>$ Balance sheet $>$ Statement of cash flows

Statement of cash flows $>$ Statement of stockholders' equity $>$ Balance sheet $>$ Income statement

$5.$ The difference between net income and dividends paid is known as what?

Addition to retained earnings

Ending balance in retained earnings

Gross profit

Total stockholders' equit