4 multiple choice questions below

Question 33 (2 points)The financial statements must be completed in the following order:

a

Balance sheet, trial balance, income statement, statement of owner's equity.

b

Income statement, statement of owner's equity, balance sheet.

c

Income statement, statement of owner's equity, adjusted trial balance.

d

Worksheet, trial balance, income statement, balance sheet.

e

Statement of owner's equity, income statement, balance sheet.

Question 34 (2 points)A voucher system is a series of prescribed control procedures:

a

To ensure that the company sells on credit only to creditworthy customers.

b

Used almost exclusively by small companies.

c

Designed to control cash disbursements and the acceptance of obligations.

d

Designed to determine if the company is operating profitably.

e

Which eliminate the need for subsidiary ledgers.

Question 35 (2 points)Net Income:

a

Represents owners' claims against assets.

b

Decreases equity.

c

Equals assets minus liabilities.

d

Is the excess of revenues over expenses.

e

Represents the amount of assets owners put into a business.

Question 36 (2 points)The basis for adjusting entries is founded on these two principles:

a

Objectivity principle, matching principle.

b

Cost principle, revenue recognition.

c

Revenue recognition, matching principle.

d

Cost principle, matching principle.

e

Business entity, time period assumption.