Multiple Choice Answers

Accounting is sometimes called the __________.

a. Language of business
b. Report function
c. Results of operations
d. Stockholders’ equity report

Discounts taken by the buyer for early payment of an invoice are called purchases discounts by the buyer.

True
False

If merchandise costing $2,500, terms FOB destination, 2/10, n/30, with transportation costs of $100, is paid within 10 days, the amount of the purchases discount is $52.

True
False

Physical assets of a long-term nature are referred to as fixed assets.

True
False

Service businesses produce products rather than provide services to customers.

True
False