Quiz Ch 03 – T/F Cash-Basis Accounting and Sales on Account
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
In cash-basis accounting, a sale made on account does NOT require a journal entry.
In cash-basis accounting, a sale made on account does NOT require a journal entry.
True or false: Many intangible assets are excluded from the balance sheet primarily due to their challenging valuation.
True or false: It is accurate to say that EBITDA stands for earnings before interest, taxes, debt, and assets.
Unearned Service Revenue is classified as a revenue account.
A classified balance sheet categorizes current assets and liabilities separately from long-term ones.
The end of the accounting period involves temporary account closure.
True or false: In common-size balance sheets, every item is displayed as a percentage of total assets.
True or false: the balance sheet tracks the movement of funds in and out of different accounts across time, while the income statement assesses the financial status of a company at a specific moment.
True or false: Net income and cash flow are two metrics for evaluating a company’s financial performance. Accountants stress net income per generally accepted accounting principles, while finance professionals often prioritize cash flows at least as much as net income.
True or false: Is it accurate to liken the income statement to a video and the balance sheet to a snapshot when describing their nature and characteristics?