True (t) or False (f) _____ Currently, both U.S. GAAP and the International Financial Reporting Standars are acceptable for international use. _____ The AICPA's Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accotungin principles. _____ Companies consider only quantitative factors in determining whether an item is material.
PROBLEM
True (t) or False (f)
_____ Currently, both U.S. GAAP and the International Financial Reporting Standars are acceptable for international use.
_____ The AICPA's Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accotungin principles.
_____ Companies consider only quantitative factors in determining whether an item is material.
_____ Financial statements are the principal means through which financial information is communicated to those outside an enterprise.
_____ The matching principle states that debits must equal credits in each transaction.
_____ The income statement is useful for helping to assess the risk or uncertainty of achieving future flows.
_____ Revenues, gains, and distributions to owners all increase equity.
_____ The balance sheet omits many items that are of financial value to the business but cannot be recorded objectivelty.
_____ A strength of the income statement as compared to the balance sheet is that items that cannot be measured reliably can be reported in the income statement.
_____ Liquidity refers to the ability of an enterprise to pay its debts as the mature.
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