Debits vs. Credits T/F

Question 1

Working capital equals current assets, including inventory, minus current liabilities.

Accepted Answer

true

Question 2

Horizontal analysis expresses each item as a percentage of the current year’s sales or total assets.

Accepted Answer

false

Answer

true

Question 3

Dividends are expensed on the declaration date, not on the payment date.

Accepted Answer

false

Answer

true

Question 4

Internal controls are the responsibility of the external auditor.

Accepted Answer

false

Answer

true

Question 5

The triple bottom line is so named because it consists of financial, environmental, and economic activity.

Accepted Answer

false

Answer

true

Question 6

The production budget should be prepared before the direct labor budget.

Accepted Answer

true

Question 7

Poor quality materials are a common cause of favorable materials price variances.

Accepted Answer

true

Question 8

As variable costs increase, fixed costs per unit decrease.

Accepted Answer

false

Answer

true

Question 9

In all cases in which FIFO is used, the cost of goods sold is the same whether a perpetual or periodic system is used.

Accepted Answer

true

Question 10

The FASB’s Accounting Standards Codification creates a new set of generally accepted accounting principles.

Accepted Answer

false

Answer

true

Question 11

Intraperiod tax allocation relates the income tax expense of a fiscal period to the specific items that give rise to the amount of the tax provision.

Accepted Answer

true

Question 12

The unknown present value is always a larger amount than the known future value because dollars received currently are worth more than dollars to be received in the future.

Accepted Answer

false

Answer

true

Debits vs. Credits T/F

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