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(T / F) Retained earnings represent undistributed net income. Select one:True False FeedbackCorrect. Net income minus dividends yields retained earnings. The correct answer is 'True'.Question 2CorrectQuestion text(T / F) The three forms of business organizations are single proprietorship, partnership, and trust.Question 3CorrectQuestion text(T / F) Accounting rules in the United States are known as International Financial Reporting Standards (IFRS). Question 4
IncorrectQuestion text(T / F) The income statement shows the profitability of the company and is dated as of a particular date, such as December 31, 2014.Question 5CorrectQuestion text(T / F) The three types of business activity are service, merchandising, and manufacturing.Select one:True False FeedbackCorrect. The accounting for all three of these is covered in this text.The correct answer is 'True'.Question 6CorrectQuestion text(T / F) A single proprietorship (aka sole proprietorship) is an unincorporated business owned by an individual and often managed by that individual.
Question 7CorrectQuestion text(T / F) In a company the person in charge of the accounting activity is called the controller or chief financial officer. Question 8CorrectQuestion text(T / F) The balance sheet contains the same major headings as appear in the accounting equation.Question 9CorrectQuestion text(T / F) The equity ratio shows the proportion of the company's assets that is financed through investments by the owners. Select one:True False Feedback
Correct.The correct answer is 'True'.Question 10Question text(T / F) The equity ratio is the stockholders’ equity divided by total liabilities.The correct answer is 'False'Who uses accounting information?