会计英语相关习题.pdfVIP

Chapter 01 Financial Statements and Business Decisions True / False Questions 1. Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers. True Fals 2. Assets on the balance sh t are recorded at market value or replacement cost. True Fals 3. In accounting and reporting for a business entity, the accounting and reporting for th business must be kept separate from other economic affairs of its owners. True Fals 4. The accounting period in which service revenue is recognized (i.e., revenue for services rendered) is generally the period in which the cash is collected. True Fals 5. Total assets are $70,000, total liabilities, $40,000 and contributed capital is $20,000; therefore, retained earnings are $15,000. True Fals 6. The payment of a cash dividend to stockholders increases stockholders equity. True Fals 7. The accounting model for the balance sh t is: Assets + Liabilities = Stockholders Equity. True Fals 8. A decision maker who wants to understand a companys financial statements must carefully read the notes to the financial statements because the notes provide useful supplemental information. True False 9. The financial statement that shows an entitys economic resources and its liabilities is the statement of cash flows. True False 10. Companies prepare financial statements at the end of each year and more often as needed. True False 11. A note payable is a borrowing instrument that generally does not involve the payment of interest. True False 12. The amount of cash paid by a business for office utilities would be reported on the statement of cash flows as an operating activity. True False 13. The income statement equation is Expense