Question

Multiple Choice: Accounting: a. measures business activities. b. processes data into reports and communicates the data to decision makers. c. is often called the language of business. d. is all of the above. The accounting equation can be stated as: a. Assets + Liabilities - Stockholders' equity b. Assets = Liabilities + Stockholders' equity c. Assets = Liabilities - Stockholders' equity d. Assets + Stockholders' equity = Liabilities When services are performed on account: a. cash is increased. b. revenue will not be recorded until the cash is received from the customer. c, accounts receivable is increased. d, accounts payable is increased. A statement of responsibility, issued along with a company's financial statements, indicates that the financial statements are the responsibility of: a. management. b. the auditors. c. the board of directors. d. the shareholders. The debt ratio is computed by dividing: a. total liabilities by total assets b. current liabilities by total assets c. total assets by total liabilities d. total assets by current liabilities

Answer 1

1)	d)	is all of the above
2)	b)	assets = liabilities + stockholder's equity
3)	c)	accounts receivable is increased
4)	c)	the board of directors
5)	a)	total liabilities by total assets

Answer 2

All of the above