Test bank for contemporary mathematics for business and consumers 9th edition brechner full chapter,.

,DOWNLOAD THE Test Bank for Financial Accounting 9th Edition Libby
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Chapter 02 c c




Investing and Financing Decisions and the Accounting System
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Truec/cFalsecQuestions



1. Thecprimarycobjectivecofcfinancialcreportingcisctocprovidecusefulcinformationctocexternalcdecisionc
makers.


True False


2. Incordercforcinformationctocbecrelevant,cthecinformationcneedsctocbeccomplete,cneutral,candcfreecfromc
error.


True False


3. Incordercforcinformationctocbecrelevant,cthecinformationcshouldchavecbothcpredictivecand/orcfeedbackc
value.


True False


4. Theccontinuitycassumptioncstatescthatcacbusinesscwillccontinuectocoperatecintocthecforeseeablecfuture.


True False


5. Theccurrentcassetscsectioncofcacbalancecsheetcincludescbothcinventorycandcprepaidcexpenses.


True False




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6. Thecstockholders'cequitycsectioncofcacbalancecsheetcincludesccapitalccontributedcbycownerscandcalsocr
etainedcearnings.


True False


7. Undercthecmonetarycunitcassumption,caccountingcinformationcshouldcbecmeasuredcandcreportedcinct
ermscofcthecnationalcmonetarycunit,cwithcancadjustmentcforcchangescincpurchasingcpower.


True False


8. Assetscarecreportedconcthecbalancecsheetcincthecordercofcliquidity.


True False


9. Manycvaluablecintangiblecassetscsuchcasctrademarkscandccopyrightscarecnotcreportedconcaccompany'sc
balancecsheet.


True False


10. Stockholders'cequitycreflectscthecfinancingcprovidedcbycowners.


True False


11. Commoncstockcandcadditional-paidcinccapitalcrepresentcthecfinancingcsourcescfromcshareholders.


True False


12. Financialcreportingcfocusesconcreportingcthecimpactcofctransactionsconcancentity'scfinancialcposition.


True False


13. Unearnedcrevenueciscreportedconcthecbalancecsheetcascacliabilitycandcrepresentscamountscpaidctocance
ntitycincexchangecforcfuturecservicescand/orcgoods.


True False




2-2
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HillcEducation.
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, DOWNLOAD THE Test Bank for Financial Accounting 9th Edition Libby
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14. Actransactioncmaycbecancexchangecofcassetscorcservicescbyconecbusinesscforcassets,cservices,corcp
romisesctocpaycfromcacdifferentcbusiness.


True False


15. Thecdualceffectscconceptcimpliescthatceveryctransactionchascatcleastctwoceffectsconcthecaccountingce
quation.


True False


16. Thecaccountingcequationcdoescnotchavectocbecincbalancecaftercthecrecordingcofceachctransaction.


True False


17. Additional-paidcinccapitalciscreportedconcthecbalancecsheetcascaccomponentcofcshareholders'cequity.


True False


18. Commoncstockcandcadditional-
paidcinccapitalcarecbothcreportedconcthecbalancecsheetcasccomponentscofcshareholders'cequity.


True False


19. Accompany'scassetscandcstockholders'cequitycbothcincreasecwhenctheccompanycsellscadditionalcsharesc
ofcstockcincexchangecforccash.


True False


20. Purchasingcsuppliescforccashcresultscincancincreasecinctotalcassetscforcthecpurchasingccompany.


True False


21. Thecnormalcbalancecforcancassetcaccountciscacdebitcandcthecnormalcbalancecforcacliabilitycaccountciscacc
redit.


True False




2-3
Copyrightc©c2017cMcGraw-HillcEducation.cAllcrightscreserved.cNocreproductioncorcdistributioncwithoutcthecpriorcwrittencconsentcofcMcGraw-
HillcEducation.
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