Multiple choice

1. The normal balance of any account is the 

a. left side. 

b. right side. 

c. side which increases that account. 

d. side which decreases that account. 

2. The double-entry system requires that each transaction must be recorded 

a. in at least two different accounts. 

b. in two sets of books. 

c. in a journal and in a ledger. 

d. first as a revenue and then as an expense. 

3. An accounting time period that is one year in length, but does not begin on January 1, is referred to as 

a. a fiscal year. 

b. an interim period. 

c. the time period assumption. 

d. a reporting period. 

4. Management usually desires ________ financial statements and the IRS requires all businesses to file _________ tax returns. 

a. annual, annual 

b. monthly, annual 

c. quarterly, monthly 

d. monthly, monthly