Question

In: Accounting

1. True___False___ The issuance of Common Stock produces Sales (or Revenue) for a corporation.        2. True___False___...

1. True___False___ The issuance of Common Stock produces Sales (or Revenue) for a corporation.       

2. True___False___ The issuance of Common Stock produces a profit for a corporation.               

3. True___False___ Dollar amounts on a Balance Sheet are valid only for a single date.

4. True___False___ An Income Statement provides information about a company’s performance.

5. True___False___ A Journal entry always consists of at least one Debit and one Credit.

6. True___False___ The Journal provides a chronological record of a company’s transactions.

Solutions

Expert Solution

  1. False___ The issuance of Common Stock produces Sales (or Revenue) for a corporation.

Issuance of common stock is not an operating cash inflow and hence not a revenue.      

  1. False___ The issuance of Common Stock produces a profit for a corporation.

Issuance of common stock is not a revenue and hence do not contribute to addition in net income.               

  1. True---- Dollar amounts on a Balance Sheet are valid only for a single date.

Dollar amount stated on a balance are stated at a particular date whether it’s the end of the month, year or quarter.

  1. True___An Income Statement provides information about a company’s performance.

Income statement tells how much a company has earned in terms of net income and revenue. The overall performance is pictured in income statement.

  1. True-- A Journal entry always consists of at least one Debit and one Credit.

The double entry system will complete only when one entry is debit and other is credit.

  1. True--The Journal provides a chronological record of a company’s transactions.

Journal entries are made every day in chronological order which inturns gives us the financial statements at the end of a reporting period

ekkarill92 answered 9 months ago
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