MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

5) 6) 7) 8) The expense recognition principle, also called the matching principle: A) Prescribes that accounting information is based on actual cost. B) Provides guidance on when a company must recognize revenue. C) Prescribes that a company report the details behind financial statements that would impact users' decisions. D) Prescribes that a company record the expenses it incurred to generate the revenue reported. E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities. Which of the following transactions could have caused that effect? A) Cash was received from providing services to a customer. B) Cash was received as an owner investment. C) Equipment was purchased on credit. D) Supplies were purchased for cash. E) Advertising expense for the month was paid in cash. Which of the following is liability account? A) Accounts Payable. B) Accounts Receivable. C) Cash. D) Supplies. E) Prepaid Insurance. The statement of owner's equity: A) Reports how equity changes at a point in time. B) Reports how equity changes over a period of time. C) Reports on cash flows for operating, financing, and investing activities over a period of time. D) Reports on cash flows for operating, financing, and investing activities at a point in time. E) Reports on amounts for assets, liabilities, and equity at a point in time