I. Multiple Choice Questions. ONLY ONE answer is correct. (1X2020 imits the economie data in an accounting system to data related directly to the activities of the business b. The objective concept d. The partnership concept aThe cost concept c. The business entity concept 2. A credit may signify a(n a. increase in liability account b. increase in asset account c. increase in expense account d. decrease in equity account 3. Under the revenues are reported in the income statement in the period in which they are earned a. cash basis of accounting b. accrual basis of accounting c. adjusting process d. posting process 4. The following accounts are permanent accounts except a. wage expenses b. accounts receivable c. accumulated depreciation d. supplies 5. When there are a large number of individual accounts with a common characteristic, it is common to place them in . a. creditors ledger b. subsidiary ledger c. accounts payable ledger d. accounts receivable ledger 6. The income statement in which the total of all expenses is deducted from the total of all revenues is termed the a. multi-step form b. single-step form c. account form d. report form 7. The objectives of control over inventory are a. safeguarding the inventory from damage or theft c. using proper inventory cost method b. reporting inventory in the financial statements d. both a and b