The matching concept states that expenses should be offset against revenue earned in order to determine net income.

The Purchases account does not provide a perpetual record of the cost of the goods currently on hand.

The ending balance of the capital account appears in the income statement

A W-2 form given to each employee summarizes the information reported to the IRS on each employee’s income and withholdings.

The purchase of equipment for cash would increase total assets.

The collection of cash from a charge customer would increase assets and decrease liabilities.

The adjusting entry for the depreciation of a plant asset such as equipment involves a credit to depreciation expense.

Current assets should be listed on the balance sheet of a company in order of the liquidity of the assets.

Net income will result if net sales exceed the cost of goods sold plus operating expenses.

In reconciling a bank statement, an NSF check is added to the book balance.

Assets - Liabilities = Owner's Equity is another way to express the basic accounting equation Assets = Liabilities + Owner's Equity.

The increases and decreases caused by business transactions are recorded in specific accounts listed in a business's chart of accounts.

A creditor does not have a financial claim to the assets of a business.

The difference between the debit and credit amounts in an account is the account balance.

The difference between the debit and credit amounts in an account is the account's balance.

Expenses decrease owner’s equity and are recorded with a credit to the expense account(s).

Temporary capital accounts are a subset of the owner's permanent capital account(s) that are closed to the permanent capital account(s) at the end of the accounting year.

The type of business that sells products directly to the consumer is called a manufacturing business.

A business should have separate accounts for recording revenues and expenses.

A journal is a summary accounting record that after posting contains all the accounts and their current balances.