Choose the correct answer for the following items.

1) Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date?

A) Statement of cash flows

B) Statement of retained earnings

C) Income statement

D) Balance sheet

2) Which of the following sequences is the normal sequence of flow of accounting data?

A) Ledger Journal Source document

B) Journal Source document Ledger

C) Source document Journal Ledger

D) Source document Ledger Journal

3) The field of accounting that focuses on providing information for external decision makers is ________.

A) managerial accounting

B) financial accounting

C) cost accounting

D) nonmonetary accounting

4) Which of the following is the record holding all the accounts, the changes in those accounts, and their balances?

A) Ledger

B) Journal

C) Source document

D) Trial balance

5) Luna Rashed decided to start her own CPA practice as a professional corporation, Rashid CPA PC. Her corporation purchased an office building for $35,000 that her real estate agent said was worth $50,000 in the current market. The corporation recorded the building as a $50,000 asset because Luna believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated?

A) cost principle

B) economic entity assumption

C) monetary unit assumption

D) going concern assumption