MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. I) GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to 1) A) Government Approved Accounting Principles B) Generally Accepted Accounting Principles C) Globally Accepted Accounting Policies D) Generally Accredited Accounting Policies 2Y 2) According to the than at the estimated market value. A) economic entity concept C) monetary unit assumption acquired assets should be recorded at the amount actually paid rather B) cost principle D) going concern assumption 3) A business prepays four months' office rent. Which of the following accounts is debited? B) Unearned Rent 3) D) Cash C) Rent Expense A) Prepaid Rent 4) A business purchases $500 of office supplies on account. What is the effect on the accounting equation? A) Office Supplies increase and Accounts Payable decrease B) Office Supplies increase and Accounts Payable increase C) Total assets increase and total liabilities decrease D) Office Supplies increase and Cash decreases 4) 5) A business purchases equipment with $8,000 cash. Which of the following accounts is credited? A) Equipment C) Accounts Payable 5) B) Smith, Capital D) Cash the entity will remain in operation for the foreseeable future. B) economic entity concept D) monetary unit assumption 6) As per the A) cost principle C) going concern assumption 7) 7) The Accounts Payable account of Waterford Company has the following postings: Accounts Pay able 14,000 25,000 7000 14,000 Calculate the ending balance of the account A) $7000 debit D) $18,000 debit C) $18,000 credit B) $14,000 credit