Select the best answer for each of the following questions or uncompleted sentences.

Select the best answer for each of the following questions or uncompleted sentences.
1.Please select the items which do not belong to the Balance Sheet?
A) Long-term investment
B) Accounts receivable
C) Income tax expense
D) Retained earnings
2.In general,which is the basis of preparing a Balance Sheet?
A) Assets = Liabilities + Owners’ Equity.
B) Assets – Liabilities = Owners’ Equity.
C) Profits = Revenue – Expenses
D) Revenues = Profit- Expenses
3.The major elements of the income statement are ______________.
A) revenue,cost of goods sold,selling expenses,and general expense
B) Operating section,non-operating section,discontinued operations,extraordinary items and cumulative effects.
C) revenues,expenses,gains and losses.
D) all of these.
4.The statement of cash flows classifies cash receipts and cash payments by the following activities:__________.
A) operating and non-operating.
B) investing,financing,and operating.
C) financing,operating,and non-operating
D) investing,financing,and non-operating
5.Cash dividends paid to stockholders are classified on the statement of cash flows as ______.
A) operating activities
B) investing activities
C) a combination of the above
D) financing activities
6.A credit is on the right-hand side of _____.
A.an assets account only
B.a liability account only
C.an owners’ equity account only’
D.all accounts
7.Which of the following is a correct statement of the rules of debit and credit?______.
A.Debits increase assets and decrease liabilities;
B.Debits decrease assets and increase owners’ equity;
C.Credits increase assets and decrease liabilities;
D.Credits increase assets and increase owners’ equity;
E.None of the above
8.Which of the following is not true?______.
A.Increases in assets are recorded as debits;
B.Increases in liabilities are recorded as debits;
C.Decreases in owners’ equity are recorded as debits;
D.Increases in expenses are recorded as debits;
E.Increases in revenues are recorded as credits.
9.The left side of an account is referred to as _____.
A.the balance;
B.a debit;
C.a credit
D.a footing
10.Which of the following debit and credit is true?___.
A.Increases in owners’ equity are recorded by credits;
B.Revenue is recorded by credits;
C.Decreases in owners’ equity are recorded by debits;
D.Expenses are recorded by debits;
E.All of the above are correct.
11.The following are all cash except _____.
A.money orders;
B.Coins;
C.Stamps;
D.checks
12.T&D Co.sells merchandise on Feb.15 on account to Penny Co.for $11,000,terms 2/10,n/30.On Feb.24,payment is received from Penny Co.for the balance due.The amount received should be _______
A.$11,000
B.$10,780
C.$11,220
D.$220
13.Cost of goods sold is computed by adding beginning inventory and net purchases and subtracting X,what is
A.net sales;
B.ending inventory
C.sales discount
D.net purchases
14.To determine the cost of goods sold ____
A.Ending inventory is deducted from net purchases
B.Freight out is added to net purchases
C.Purchases Returns and Allowances are deducted from net purchases
D.Freight in is added to net purchases