General Purpose Financial Statemetns

Question 1

Does the income statement include all items of revenue and expense, gain and loss for a period? True or False

Answer 1

False

Question 2

Would the classification of the portion of long-term debt due within one year of the balance date as current be appropriate? True or False

Answer 2

True

Question 3

Is an investment in stocks of another company a cash equivalent if it is expected to be sold within two months of the balance sheet?

Answer 3

No

Question 4

The balance sheet is dated differently from the income statement and the statement of cash flows. True or False

Answer 4

True

Question 5

Financing is the appropriate cash flow classification of a dividend payment.

Answer 5

Yes

Question 6

The total amount included in cash or in cash equivalents in the statement of cash flows must be the same title and groups of accounts used in the statement of financial position. True or False

Answer 6

True

Question 7

In the following yr 2 single step income statement what should be reported as total revenues:

Sales $250,000
Purchase discounts 3,000
Recovery of accounts written off 10,000
Total revenues $263,000

Answer 7

Only the 250,000 in sales because the calculation should not include purchase discounts and recovery of written off accounts.