True/False accounting questions! please help!!?
Question by bonbon: True/False accounting questions! please help!!?
37)Net income under accrual timing is subject to more distortion than cash flow from operations cuz of large accruals and deferrals that can impact reported income
38)If a comp’s rev exceed expenses, then the net income will cause a credit to be recorded to retained earnings in the last closing entry
39)Those firms that make relatively conservative estimates for their accrued and deferred adjustments are said to have financial reports disclosing a higher quality of earnings
40)Closing entries are required by GAAP principles, while ajusted entries are optional
15)The payment of a liability in cash will decrease owners equity
18)It is not possible for the left side of the equation to both increase and decrease as a result of the same transaction
23)An example of ongoing operations is rev earned thru the sale of a new car by a car dealership
24)An example of rev earned from ongoing operations activities is the sale of an extended warranty contract on a washer and dryer
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Answer by Andrew O
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