Show transcribed image text Multiple Choices (50 Points) 1. Which of the following best describes accounting? A. Is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements B. Is an information system that provides reports to users regarding economic activities and condition of a business C. Records econo c data but does not co the data to users according to any specific mmunicate rules. D. Is of no use by individual outside of the business 2. Earning revenue al entry is recorded as A. Increases assets, decreases stockholders’ liabilities B. Decreases assets, increases liabilities C. Increases assets, increases stockholders’ equity D. Increases one asset, decrease another assets 3. A chart of accounts is A. usually listed in the order in which they appear in financial statement. B. Usually a listing of accounts in alphabetical order C. The same as a balance sheet D. One of the four financial statements. 4. Which group of accounts is comprised of only assets? A. Unearned Revenues, Prepaid Expenses, Cash B. Accounts Receivable, Revenue, Cash C. Prepaid Expenses, Buildings, Patents D. Cash, Accounts Payable, Buildings. 5. Which of the following entries records the acquisition of office supplies on account? A. Office Supplies, debit, Cash, credit B. Office Supplies, debit Accounts Payable, credit C. Accounts Receivable, debit, Office Supplies, credit D. Cash, debit, Office Supplies, credit