FABM Chapter 5 Review true or false

Question 1

The elements of financial statements refer to the qualitative information shown in the statement of financial position and income statement.

Answer 1

True

Question 2

Elements of the financial statements that are directly related to the financial position are assets, liabilities, and income

Answer 2

False

Question 3

Elements of the financial statements that are directly related to financial performance are income and expense

Answer 3

True

Question 4

For an item to be considered as an asset, it just be resource controlled by the company a result of past transactions or event, there must be future economic benefits and the cost cannot be measured reliably.

Answer 4

False

Question 5

If the company has a revenue greater than its expenses for a certain period of time, the company incures net loss.

Answer 5

False

Question 6

Assets are amounts owed by the company

Answer 6

False

Question 7

Liabilities are resources owned by the company

Answer 7

False

Question 8

Equity is the residual interest of owners in the net assets of a company measured by the excess of assets over liabilities.

Answer 8

True