1. Which accounting method records revenues when they are earned and expenses as they are incurred whether or not cash has been exchanged?

1. accrual basis
2. cash basis
3. expense basis
4. earned basis

2. Which of the following statements is sometimes called the profit and loss statement?

1. balance sheet
2. statement of changes in financial position
3. income statement
4. statement of cash flow

3. The adjusting entry to record the use of supplies would include

1. debiting Supplies and crediting Supplies Expense.
2. debiting Supplies Expense and Cash.
3. debiting Supplies and crediting Cash.
4. debiting Supplies Expense and crediting Supplies.