Question 11 ptsThe standards that indicate how companies record and report economic events in the financial statements areInternal Revenue Service regulations.Generally Accepted Accounting Principles.Securities Exchange Commission regulations.Financial Statement regulations.Flag this QuestionQuestion 21 ptsThe cost principle requires that when assets are acquired, they be recorded atappraisal value.historical cost.market price.exchange price paid.Flag this QuestionQuestion 31 pts_ and _ are assets, _ is a liability and _ is an owner’s equity accounts.Cash, accounts payable, notes payable, owner’s drawings.Accounts receivable, prepaid rent, accounts payable, unearned revenue.Buildings, supplies, accounts receivable, owner’s drawings.Prepaid insurance, accounts receivable, unearned revenue, owner’s capital.Flag this QuestionQuestion 41 ptsRevenues would result fromperformance of a service.initial investment of cash by owner.collection from a customer on account.payment of supplies purchased.Flag this QuestionQuestion 51 ptsThe accounting equation for Gudgeyes Enterprises is as follows: Assets Liabilities Owner’s Equity$120,000 = $60,000 + $60,000If Gudgeyes collects $12,000 from a customer on account, the accounting equation after the transaction will be$120,000 = $60,000 + $60,000$132,000 = $60,000 + $72,000$132,000 = $66,000 + $66,000$132,000 = $72,000 + $60,000Flag this QuestionQuestion 61 ptsPurchase of $500 supplies on accountincreases an asset $500; decreases an asset $500.increases an asset $500; increases a liability $500.decreases a liability $500; increases owner’s equity $500.decreases an asset $500; decreases a liability $500.Flag this QuestionQuestion 71 ptsOwner’s capital at the end of the period is equal toowner’s capital at the beginning of the period plus net income minus liabilities.owner’s capital at the beginning of the period plus net income minus drawings.net income.assets plus liabilities.Flag this QuestionQuestion 81 ptsA balance sheetsummarizes the changes in owner’s equity for a specific period of time.reports the changes in assets, liabilities, and owner’s equity over a period of time.reports the assets, liabilities, and owner’s equity at a specific date.reports the revenues and expenses for a specific period of time.Flag this QuestionQuestion 91 ptsCarla’s Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in computer repair revenues, $250,000 in expenses, and Carla withdrew $45,000. Carla’s Capital balance at the end of the year was$200,000.$230,000.$290,000.$245,000.Flag this QuestionQuestion 101 ptsA net loss will result during a time period whenliabilities exceed assets.drawings exceed investments.expenses exceed revenues.revenues exceed expenses.