B. TRUE OR FALSE. 1) T F 2) T F 3) T F 4) T F 5) 6) T F T F 7) T F Indicate whether each statement is true or false. Cash equivalents include short-term, highly liquid investments that mature in 6 months, such as T-Bills and T-Notes. The FASB prefers that the direct method of the statement of cash flows be used; but if used, a reconciliation of net income to cash provided by operations must also be included. If 5% of revenues are derived from a single customer, the company must disclose the total amount of revenues from each such customer. Although potentially helpful to financial statement readers, information about significant foreign sales of a multinational corporation does not have to be disclosed in the notes to the financial statements. Auditors rarely give unmodified (unqualified) audit opinions because the SEC will bar corporations receiving such opinions from selling their stock publicly. The direct method of cash flow statement is the most popular method used by corporations in the U.S. today. The gross profit method of determining ending inventory is acceptable per GAAP for both interim and annual financial statements.
B. TRUE OR FALSE. 1) T F 2) T F 3) T F 4) T F 5) 6) T F T F 7) T F Indicate whether each statement is true or false. Cash equivalents include short-term, highly liquid investments that mature in 6 months, such as T-Bills and T-Notes. The FASB prefers that the direct method of the statement of cash flows be used; but if used, a reconciliation of net income to cash provided by operations must also be included. If 5% of revenues are derived from a single customer, the company must disclose the total amount of revenues from each such customer. Although potentially helpful to financial statement readers, information about significant foreign sales of a multinational corporation does not have to be disclosed in the notes to the financial statements. Auditors rarely give unmodified (unqualified) audit opinions because the SEC will bar corporations receiving such opinions from selling their stock publicly. The direct method of cash flow statement is the most popular method used by corporations in the U.S. today. The gross profit method of determining ending inventory is acceptable per GAAP for both interim and annual financial statements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:B. TRUE OR FALSE.
1)
T
F
2)
T
F
3)
T
F
4)
T
F
5)
6)
T
F
T F
7) T F
Indicate whether each statement is true or false.
Cash equivalents include short-term, highly liquid investments that mature in 6 months, such as T-Bills
and T-Notes.
The FASB prefers that the direct method of the statement of cash flows be used; but if used, a
reconciliation of net income to cash provided by operations must also be included.
If 5% of revenues are derived from a single customer, the company must disclose the total amount of
revenues from each such customer.
Although potentially helpful to financial statement readers, information about significant foreign sales
of a multinational corporation does not have to be disclosed in the notes to the financial statements.
Auditors rarely give unmodified (unqualified) audit opinions because the SEC will bar corporations
receiving such opinions from selling their stock publicly.
The direct method of cash flow statement is the most popular method used by corporations in the U.S.
today.
The gross profit method of determining ending inventory is acceptable per GAAP for both interim and
annual financial statements.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education