Please find the digital version if the book needed for this assignment below is the info to login Username: Password: Hannah12 1. Question 1: o Proficient: Describe the steps in recording and posting the effects of a business transaction and provide some examples of source documents used in these steps. Define debit and credit and name the types of accounts that are (three correct responses): Increased by a debit. Decreased by a debit. Increased by a credit. Decreased by a credit. o Distinguished: Correctly identify all of the types of accounts on the list. 2. Question 2: o Proficient: Which steps in the accounting cycle are performed throughout the accounting cycle? Which of the steps in the accounting cycle are performed only at the end of the accounting period? o Distinguished: Many of the steps in the accounting cycle can be performed on a computer with an accounting software package. Research three of the most commonly used packages and decide which one you would choose if you were starting a small business this year. 3. Question 3: o Proficient: Why are separate œexpense and œrevenue accounts used when all revenues and expenses could be shown directly in the retained earnings account? Describe three examples of transactions that would affect a firm’s income statement. For each transaction, identify if the transaction has a positive or negative effect on the firm’s net income. o Distinguished: What is the purpose of the œdividends account and under what circumstances would this account be increased? Under what circumstances would the œdividends account be decreased? 4. Question 4: o Proficient: Are the following possibilities conceivable in an entry involving only one debit and one credit? Please explain your response for each item. Provide five or six correct responses: Increase a liability and increase an expense. Increase an asset and decrease a liability. Increase revenue and decrease an expense. Decrease an asset and increase another asset. Decrease an asset and increase a liability. Decrease revenue and decrease an asset. Decrease a liability and increase revenue. o Distinguished: Correctly identify all of the items. 5. Question 5: o Proficient: Define the œnormal balance for an account. What are the rules of debit and credit for accounts appearing on a firm’s balance sheet? o Distinguished: What are the rules associated with accounts appearing on a firm’s income statement?