• 
• 
• 
• 

• Increase assets, Increase liabilities

• Increase assets, Decrease equity

• Decrease assets, Increase liabilities

• Increase assets, Decrease Assets

• Both statements are true

• Both statements are false

• Only Statement I is correct

• Only Statement II is correct

• Unearned Sales

• Accrued Salaries

• Other Comprehensive Income

• Inventory Variance

• Prior Period Error

• Change in Accounting Policy

• Change in Accounting Estimate

• Initial Adoption of an Accounting Policy

What is the proper order of the following steps in the accounting cycle and preparation of the

financial statements, EXCLUDING the optional steps?

• III, II, I, IV, IX, VII, VI

• III, II, I, VIII, IV, IX, VII

• III, II, I, IX, IV, VII

• III, II, I, IX, IV, VII, V

• Unlimited liability for owners

• Double taxation of income

• Mutual agency among partners

• Ability to raise capital through issuing shares

• Supplies used

• Financing costs

• Other Comprehensive Income

• Inventory Variance