Selected Answer Tru e Answers Tru e False Question 2 5 out of 5 points The

Selected answer tru e answers tru e false question 2

This preview shows page 13 - 17 out of 85 pages.

Selected Answer: Tru e Answers: Tru e False Question 2 5 out of 5 points The income statement identifies the major sources of revenues generated by the firm and the corresponding expenses that were needed to generate those revenues.
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Selected Answer: Tru e Answers: Tru e False Question 3 5 out of 5 points The book value of an asset is the historical cost of the asset less the accumulated depreciation. Selected Answer: Tru e Answers: Tru e False Question 4 5 out of 5 points The current market value of an asset is the amount of cash that a firm would receive for the asset if the asset was sold on the open market. Selected Answer: Tru e Answers: Tru e False Question 5 5 out of 5 points Cash flows from operating activities relate to the buying and selling of long-term assets. Selected Answer: Fals e Answers: True Fals e Question 6 5 out of 5 points The generally accepted accounting principles (GAAP) are Selected Answer: rules and procedures that define how companies are to maintain financial records and prepare financial reports. Answers: rules that outline how a firm can operate ethically. rules on how the firm will be valued in the event of a merger.
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rules and procedures that define how companies are to maintain financial records and prepare financial reports. rules for how a company can issue stock to raise money. Question 7 5 out of 5 points On June 23, 2008, Sunshine Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The firm's accountants should recognize the sale on Selected Answer: June 23, 2008 Answers: June 23, 2008 July 2, 2008 September 20, 2008 When the payment from the customer is actually received Question 8 5 out of 5 points The cost principle states that an asset should be recognized on the balance sheet at Selected Answer: its historical cost. Answers: the market value of the asset. the market value of the asset less the accumulated depreciation on the asset. its historical cost. its historical cost plus any expected revenue on the asset. Question 9 5 out of 5 points The conventional way of preparing a balance sheet is to list all assets in the order of their Selected Answer: liquidity. Answers: market value. risk.
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liquidity. historical cost. Question 10 5 out of 5 points Which one of the following is NOT true for a corporation? Selected Answer: Common-stock dividends to be paid this year will be tax deductible if the firm has a net loss for the year. Answers: Interest paid on bonds issued last year is tax deductible. Common-stock dividends to be paid this year are not tax deductible. Common-stock dividends to be paid this year will be tax deductible if the firm has a net loss for the year. Preferred stock dividends to be paid this year are not tax deductible.
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