F Ch3 problems

F Ch3 problems - TRUE OR FALSE 1_F_ 2_T_ 3_F_ 4_T_

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T R U E O R F A L S E 1. __F__ The income statement gives company’s revenues and expenses for one particular day of the year. 2. __T__ An increase in net assets of a business due to the sale of its inventory is a gain. 3. __F__ Retained earnings represents amounts contributed to the business by its owners. 4. __T__ Assets and liabilities can be broken down into the categories of current and noncurrent. 5. __T__ Income tax expense is typically reported separately from other expenses. 6. __F__ Conservatism helps companies look better to potential investors. 7. __T__ Dividends paid are reported on the balance sheet. 8. __F__ Companies receive money each time their stock is sold on a stock exchange. 9. __T__ A balance sheet should always balance. 10. __T__ The statement of cash flows is broken up into operating, investing, and financing activities. 11. __T__ Notes are considered part of a complete set of financial statements. 12. __F__ Sales revenue less cost of goods sold is referred to as net income. 13. __F__ A gain is the amount of net income earned by a company over its life less any dividends it has paid.
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F Ch3 problems - TRUE OR FALSE 1_F_ 2_T_ 3_F_ 4_T_

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