l. Multiple Choice Questions. ONLY ONE answer is correct. (1, x 20 = 20 ) 1.- limits the economic data in an accounting system to data related directly to the activities of the business. a. The cost concept c. The business entity concept b. The objective concept d. The partnership concept 2. A credit may signify a(n) a. increase in liability account c. increase in expense account b. increase in asset account d.decrease in equity account , revenues are reported in the income statement in the period in which they are 3. Under the ...............- 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 th a. multi-step form b. single-step form c. account form 7The objectives of control over inventory are c. using proper inventory cost method e total of all expenses is deducted from the total of all revenues is termed d. report fornm a. safeguarding the inventory from damage or theft b. reporting inventory in the financial statements d. both a and b