True/False.
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- The Statement of Financial Position is another name for the Balance
Sheet.
- A Balance Sheet prepared after six months in business would be dated
"For the Six Months Ending .....".
- Accounts Receivable is a type of Liability.
- Sales are not recorded until the cash is received.
- Supplies are usually carried on the Balance Sheet at historical cost even
if their market value is less.
- If Land is listed on the Balance Sheet for $15,000 that means if would
probably sell for $15,000.
- Mortgage Payable is a type of Liability.
- A Retained Earnings account is used by corporations, but not by
partnerships.
- The Statement of Activity is another name for the Balance Sheet.
- If a company has a positive net income, cash must have increased
during the year.
- Assets less Liabilities equals Owner's Equity.
- Assets less Owner's Equity equals Liabilities.
- Commissions Earned is a type of Liability.
- A repayment of the principal on a loan is an expense.
- Cash received from a loan is not a revenue.
- The amount of Supplies Expense on the Income Statement represents the
amount of cash paid for supplies during the year.
- The amount of Supplies Expense on the Income Statement represents the
amount of supplies used up during the year.
- The Statement of Cash Flows is dated as of a single date, such as June 30,
2000.
- Repayments of loan principal appear in the Financing Section of the
Statement of Cash Flows.
- Repayments of loan interest appear in the Operating Section of the
Statement of Cash Flows.
- Interest Revenue appears in the Investing Section of the Statement of Cash
Flows.
- Dividends Received on investments appear in the Investing Section of the
Statement of Cash Flows.
- A purchase of a building for cash appears in the Investing Section of the
Statement of Cash Flows.
- A sale of land for cash appears in the Operating Section of the Statement
of Cash Flows.
- The payment of a dividend on the company's own stock is listed as an
outflow under the Financing Section of the Statement of Cash Flows.