Question:
1)Assets on the balance sheet are recorded at market value or replacement cost - True or False
2)GAAP are identical in most developed countries - T or F?
3)Accounting measures/reports financial data for profit-making businesses as well as not-for-profit orgs - T or F?
4)Managers who commit accounting fraud may be fined but can't be charged with a crime punishable by jail time - T or F?
5)Using accrual basis of accounting, a company recognizes expenses when they are paid - T or F?
6)Accrual basis accounting records revenues when earned and expenses when incurred, regardless of when the related cash is received or paid - T or F?
Answers:
1) T
2) F
3) T
4) F (Tax Fraud)
5) F (Companies recognize expenses when the correlating revenue is made)
6) T
Hmm. Smells like homework. What the heck.
1. T
2. F
3. T
4. F
5. F
6. T
The only one I'm fuzzy on is #2 since 'most' and 'developed countries' are subject to interpretation. I guess it depends on who wrote your textbook. Enjoy.
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