Homework 1(Please choose one of best answer from four alternatives for all of the following statements.)1.The primary objective of financial reporting is ______.A.To present information in an ethical mannerB.To provide information to the federal governmentC.To provide information useful for investment and lending decisionsD.To provide information useful to managers in making daily decisions2.Which of the following statements is true?A.Revenues are assets because they represent economic benefitsB.Assets are economic resources that are expected to benefit future periodsC.The accounting equation can be stated as Assets + Liabilities + Owner’s EquityD.Liabilities are economic obligations to insiders3.If assets increase 80,000 during the period and owners’ equity decreases 16,000 during the period,liabilities must have ______.A.increased 64,000B.increased 96,000C.decreased 64,000D.decreased 96,0004.Which of these statements is false?A.Increases in assets and increases in revenues are recorded with a debit.B.Increases in liabilities and increases in owner’s equity are recorded with a credit.C.Increases in both assets and increases in expenses are recorded with a debit.D.ecreases in liabilities and increases in expenses are recorded with a debit.5.Which of these accounts has a normal debit balance?A.Rent ExpenseB.WithdrawalsC.Service RevenueD.Both A and B have a normal debit balance6.Which of the following statements is correct?A.The chart of accounts is a list of all accounts with their balancesB.The trial balance is a list of all accounts with their balances,divided as debit or creditC.The ledger is maintained in chart-of-accounts orderD.Both B and C are correct7.During 20x4,Bustamante Co.incurred salary expense of 240,000.Beginning and ending Salary Payable was 4,000 and 240,000.Beginning and ending Salary Payable was 248,000B.240,000C.236,000D.240,000C.3,600 is paid for a one-year insurance policy.On December 31,the adjusting entry for prepaid insurance would include ______.A. debit to Insurance Expense,3,600B.A credit to Prepaid Insurance,3,600C.A debit to Insurance expense,1,500D.A credit to Prepaid Insurance,2,10010.The 20x3 income statement showed Rent Expense of 6,100.The related balance sheet account,Prepaid Rent,had a beginning balance of 1,400 and an ending balance of 6,100.The related balance sheet account,Prepaid Rent,had a beginning balance of 6,100B.1,200C.6,300D.5,900

Homework 1(Please choose one of best answer from four alternatives for all of the following statements.)1.The primary objective of financial reporting is ______.A.To present information in an ethical mannerB.To provide information to the federal governmentC.To provide information useful for investment and lending decisionsD.To provide information useful to managers in making daily decisions2.Which of the following statements is true?A.Revenues are assets because they represent economic benefitsB.Assets are economic resources that are expected to benefit future periodsC.The accounting equation can be stated as Assets + Liabilities + Owner’s EquityD.Liabilities are economic obligations to insiders3.If assets increase 80,000 during the period and owners’ equity decreases 16,000 during the period,liabilities must have ______.A.increased 64,000B.increased 96,000C.decreased 64,000D.decreased 96,0004.Which of these statements is false?A.Increases in assets and increases in revenues are recorded with a debit.B.Increases in liabilities and increases in owner’s equity are recorded with a credit.C.Increases in both assets and increases in expenses are recorded with a debit.D.ecreases in liabilities and increases in expenses are recorded with a debit.5.Which of these accounts has a normal debit balance?A.Rent ExpenseB.WithdrawalsC.Service RevenueD.Both A and B have a normal debit balance6.Which of the following statements is correct?A.The chart of accounts is a list of all accounts with their balancesB.The trial balance is a list of all accounts with their balances,divided as debit or creditC.The ledger is maintained in chart-of-accounts orderD.Both B and C are correct7.During 20x4,Bustamante Co.incurred salary expense of 240,000.Beginning and ending Salary Payable was 4,000 and 240,000.Beginning and ending Salary Payable was 248,000B.240,000C.236,000D.240,000C.3,600 is paid for a one-year insurance policy.On December 31,the adjusting entry for prepaid insurance would include ______.A. debit to Insurance Expense,3,600B.A credit to Prepaid Insurance,3,600C.A debit to Insurance expense,1,500D.A credit to Prepaid Insurance,2,10010.The 20x3 income statement showed Rent Expense of 6,100.The related balance sheet account,Prepaid Rent,had a beginning balance of 1,400 and an ending balance of 6,100.The related balance sheet account,Prepaid Rent,had a beginning balance of 6,100B.1,200C.6,300D.$5,900