1) The accounting process is correctly sequenced as

A. identification, communication, recording.

B. recording, communication, identification.

C. identification, recording, communication.

D. communication, recording, identification.

2) Which list below best describes the major services performed by public accountants?

A. Bookkeeping, mergers, budgets

B. Employee training, auditing, bookkeeping

C. Auditing, taxation, management consulting

D. Cost accounting, production scheduling, recruiting

3) Communication of economic events is the part of the accounting process that involves

A. identifying economic events.

B. preparing accounting reports.

C. recording and classifying information.

D. quantifying transactions into dollars and cents.

4) The body of theory underlying accounting is not based on

A. physical laws of nature.

B. principles.

C. definitions.

D. concepts.

5) The private sector organization involved in developing accounting principles is the

A. Feasible Accounting Standards Body.

B. Financial Accounting Standards Board.

C. Financial Auditors' Standards Body.

D. Financial Accounting Studies Board.

6) GAAP stands for

A. Generally Accepted Auditing Procedures.

B. Generally Accepted Auditing Principles.

C. Generally Accepted Accounting Procedures.

D. Generally Accepted Accounting Principles.

7) Which of the following statements is not true?

A. Expenses increase stockholders' equity.

B. Expenses decrease stockholders' equity.

C. Expenses are a negative factor in the computation of net income.

D. Expenses have normal debit balances.

8) All of the financial statements are for a period of time except the

A. income statement.

B.