Accounting And Finance

This question bank verified by Studydeets

All Questions

Question 1

Free

True/False

An asset's liquidity is determined by how readily the asset can be converted to an appropriate amount of cash.

Choose correct answer/s

True

False

Check answer

Question 2

Free

True/False

The principal reason for excluding many intangible assets from the balance sheet is that they are difficult to value.

Choose correct answer/s

True

False

Check answer

Question 3

Free

True/False

Based on generally accepted accounting principles,assets are recorded on the balance sheet at their current market value.

Choose correct answer/s

True

False

Check answer

Question 4

Free

True/False

Assets can be either tangible or intangible.

Choose correct answer/s

True

False

Check answer

Question 5

Free

True/False

There is generally a bigger difference between the book value and the market value of fixed assets as compared to cash.

Choose correct answer/s

True

False

Check answer

Question 6

True/False

All items in the common-size balance sheet are expressed as a percentage of total assets.

Choose correct answer/s

True

False

To unlock the question

Question 7

True/False

The income statement resembles a snapshot of the firm at a specific time.

Choose correct answer/s

True

False

To unlock the question

Question 8

True/False

If the market value of assets is high,then the market value of liabilities must be high also.

Choose correct answer/s

True

False

To unlock the question

Question 9

True/False

One reason for the difference between profits and cash is that the cost of capital equipment is spread over the forecast life.

Choose correct answer/s

True

False

To unlock the question

Question 10

True/False

Accrual accounting aims to provide a fairer measure of the firm's profitability.

Choose correct answer/s

True

False

To unlock the question

Question 11

True/False

If net income is positive,then cash flow from operations must be positive for that period.

Choose correct answer/s

True

False

To unlock the question

Question 12

True/False

Dividends paid are treated as a financing activity on the statement of cash flows.

Choose correct answer/s

True

False

To unlock the question

Question 13

True/False

An increase in the accounts receivable balance increases the cash flow of a firm.

Choose correct answer/s

True

False

To unlock the question

Question 14

True/False

The payment of interest expense is considered a financing activity in the statement of cash flows.

Choose correct answer/s

True

False

To unlock the question

Question 15

True/False

Accounting practices are currently standardized across all countries.

Choose correct answer/s

True

False

To unlock the question

Question 16

True/False

Businesses that aggressively exploit any means possible to increase current earnings may cross over into fraudulent account practices.

Choose correct answer/s

True

False

To unlock the question

Question 17

True/False

A company may deduct the interest paid to debtholders and the dividends paid to shareholders when calculating its taxable income.

Choose correct answer/s

True

False

To unlock the question

Question 18

True/False

Both the dividends and interest payments that companies make to individuals are subject to personal tax.

Choose correct answer/s

True

False

To unlock the question

Question 19

True/False

The balance sheet presents a snapshot of the firm's assets and liabilities at one particular moment.

Choose correct answer/s

True

False

To unlock the question

Question 20

True/False

Book values are "forward-looking" measures of value.

Choose correct answer/s

True

False

To unlock the question