In: Accounting
1. The statement of financial position is another name for the income statement
True
False
2. The income statement only statement dated as of a point in time.
True
False
3. Assets and liabilities come into existence at different times and are not affected the same way by inflation and specific price level changes
True
False
4. For the purposes of the balance sheet preparation, there are several different measurement bases are used (historical cost, depreciated historical cost, market value, realizable value, present value) which compromises the comparability characteristic of accounting information
True
False
5. The present value of a future cash flow is its discounted value and it is the primary measurement basis for long term investmests
True
False
6. Current asset (CA): an asset expected to be realized in cash or to be consumed or sold during the normal operating cycle, or within one year of the balance sheet date, whichever is shorter.
True
False
7. Gains represent increases in net assets or settlements of liabilities by providing goods and services
True
False
8. Expenses represent decreases in net assets or incurred liabilities through the provision of goods or services
True
False
9. The requirement to disclose comprehensive income affects the computation of net income
True
False
10. Statement of Cash Flows is required for all business enterprises which report both financial position (Balance Sheet) and results of operations (Income Statement) for a period.
True
False
11. Under the net method of accounting for the cash discounts, if the customer does not pay within the discount period, a sales discount forfeit is recognized (revenue account):
True
False
12. Under the allowance method, we can estimate the uncollectable accounts receivable using either the 1) Percentage-of-Sales Approach and/or 2) Percentage-of-Receivables Approach:
True
False
Ans 1 False | |||||||
The statement of financial position another name is Balance Sheet | |||||||
ans 2 False | |||||||
Balance sheet,Cash flow statement, Income statement and statement | |||||||
of stockholder equity all are dated as a point in time | |||||||
ans 3 True | |||||||
So the recorded value of the accounts are different from the current value | |||||||
ans 4 True | |||||||
Several measurements are used in preparation of Balance sheet so we can compare | |||||||
characterstics of accounting information. | |||||||
ans 5 | |||||||
FALSE | |||||||
ans 6 True | |||||||
Current assets are cash and cash equivalents and the assets which can be sold within one year of time | |||||||
like accounts receivable, short term investments, prepaid expenses etc | |||||||
ans 7 | |||||||
TRUE | |||||||
ans 8 True | |||||||
ans 9 False | |||||||
ans 10 | |||||||
ans 11 True | |||||||
ans 12 True | |||||||
If any doubt please comment |