17. Statement 1: Unexpended balance of petty cash andchange fund are considered as "cash on hand"Statement 2: Consigned foods although these are within thepremise of our business are excluded in the physicalinventory count.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false18. Statement 1: Liabilities represent the claims of variouscreditors over the Assets of the business.Statement 2: Advance payment made by the customer forundelivered goods is treated as a liability.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false19. Statement 1: Accounts payable is usually called "Tradepayable" because there is a named-payee whenever wemake payment.Statement 2: Owner's Equity is similar to Capital,Proprietorship, Proprietary interest, and Net worth.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false20. Statement 1: Statement of Comprehensive Income waspreviously known as "Income Statement".Statement 2: Statement of Comprehensive Income tells uswhether the business makes profit or incur a loss.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false21. Statement 1: Revenue and Expenses are temporaryaccounts of an Owner's Equity.Statement 2: Revenue and expenses are closed at the end ofthe accounting period.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false 22. Statement 1: Statement of Comprehensive Incomeaccounts are also known as “nominal accounts"Statement 2: The normal balance of Revenue or incomeaccount is credit while the Expense is debit.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false23. Statement 1: Revenue decreases Owner's Equity.Conversely, Expense increases Owner's Equity.Statement 2: Profit and loss are closed to Owner's Equity.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false24. Statement 1: Statement of Comprehensive Income is dated"for the period ended".Statement 2: In the multiple step form of Statement ofComprehensive Income preparation, operating expenses aredirectly deducted from Sales revenue to arrive at Profit.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false25. Statement 1: Service concern usually follows the singlestep form of Income Statement while Merchandisingconcern follows a multi-step form.Statement 2: Operating expenses are classified intofunctional and natural expense.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false26. Statement 1: The revenue that derived from a servicecompany is “Service Revenue", while the revenue derivedfrom Merchandising business is "Sales Revenue"Statement 2: Gross profit is arrive at by deducting Salesfrom Cost of Sales or Cost of Goods sold.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false

Question

17. Statement 1: Unexpended balance of petty cash andchange fund are considered as &#34;cash on hand&#34;Statement 2: Consigned foods although these are within thepremise of our business are excluded in the physicalinventory count.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false18. Statement 1: Liabilities represent the claims of variouscreditors over the Assets of the business.Statement 2: Advance payment made by the customer forundelivered goods is treated as a liability.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false19. Statement 1: Accounts payable is usually called &#34;Tradepayable&#34; because there is a named-payee whenever wemake payment.Statement 2: Owner's Equity is similar to Capital,Proprietorship, Proprietary interest, and Net worth.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false20. Statement 1: Statement of Comprehensive Income waspreviously known as &#34;Income Statement&#34;.Statement 2: Statement of Comprehensive Income tells uswhether the business makes profit or incur a loss.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false21. Statement 1: Revenue and Expenses are temporaryaccounts of an Owner's Equity.Statement 2: Revenue and expenses are closed at the end ofthe accounting period.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false 22. Statement 1: Statement of Comprehensive Incomeaccounts are also known as “nominal accounts&#34;Statement 2: The normal balance of Revenue or incomeaccount is credit while the Expense is debit.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false23. Statement 1: Revenue decreases Owner's Equity.Conversely, Expense increases Owner's Equity.Statement 2: Profit and loss are closed to Owner's Equity.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false24. Statement 1: Statement of Comprehensive Income is dated&#34;for the period ended&#34;.Statement 2: In the multiple step form of Statement ofComprehensive Income preparation, operating expenses aredirectly deducted from Sales revenue to arrive at Profit.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false25. Statement 1: Service concern usually follows the singlestep form of Income Statement while Merchandisingconcern follows a multi-step form.Statement 2: Operating expenses are classified intofunctional and natural expense.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false26. Statement 1: The revenue that derived from a servicecompany is “Service Revenue&#34;, while the revenue derivedfrom Merchandising business is &#34;Sales Revenue&#34;Statement 2: Gross profit is arrive at by deducting Salesfrom Cost of Sales or Cost of Goods sold.a. Both statements are trueb. Only Statement 1 is truec. Only Statement 2 is trued. Both statements are false

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