14. Using these market value figures on the balance sheet violates Every year the accountant for XYZ Company adjusts the recorded amount of each asset to its market value. A double-entry accounting the historical cost concept B. C the realization principle D. the accounting equation E the matching concept Which pair of accounts uses the same debit/credit rules for recording increases and decreases in accounts? 15. A. B. C. 16. D. E cash and notes payable salaries expense and retained earnings accounts payable and common stock sales revenue and accounts receivable common stock and dividends The cash payment made on a previously recorded purchase of inventory on account would require the following journal entry (without numbers): 17. ABCDE A. debit cash and credit accounts payable B. debit cost of goods sold and credit cash C debit inventory and credit cash D. debit accounts payable and credit cash E debit cash and credit inventory Generally Accepted Accounting Principles may best be described as: the accounting standards and concepts used in the preparation of financial statements guidelines for establishing a strong system of internal control the rules and regulations used in the preparation of tax returns guidelines for keeping a business entity profitable and solvent none of the above are correct Working capital is defined as: 18. A. total assets minus current liabilities B current assets minus current liabilities C. D. total assets minus total liabilities E long-term liabilities minus current liabilities current assets minus total liabilities Which of the following is a temporary (ie., nominal) account? 19. A. cash ABCDE unearned revenue retained earnings salary expense all of the above accounts are temporary accounts 4