3 - University of Massachusetts Dartmouth Accounting 211...

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University of Massachusetts Dartmouth Accounting 211 – Principles of Accounting Chapter 3 Quiz Name: ______________________ True/False - Write “T” or “F” on the line provided. ____ 1. The operating cycle is the time it takes for a company to purchase goods, pay for the goods, sell them to customers, and collect the cash from the customers. ____ 2. The division of business activities into a series of equal time periods for accounting purposes is known as the time period assumption. ____ 3. In comparing the operating cycles of a retail company such as Target with a manufacturer of aeronautical products such as Boeing, it is most likely they would have similar length operating cycles. ____ 4. Gains are inflows of net assets from peripheral transactions. ____ 5. Interest expense connected to notes payable is an example of a non-operating or peripheral expense. ____ 6. Under accrual accounting, interest expense would be recognized when the interest has accrued with the passage of time even though cash has not been paid. ____ 7.
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This note was uploaded on 10/28/2010 for the course ACT 211 taught by Professor Sarzgowic during the Spring '10 term at UMass Dartmouth.

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3 - University of Massachusetts Dartmouth Accounting 211...

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