1. Accrual accounting always recognizes revenues at the time cash is received and expenses at the time cash is paid

TRUE FALSE

2. Independent outside auditors (like PWC) review the financial statements but dont prepare them

TRUE FALSE

3. On the Balance Sheet: Total Equity must equal Total Assets minus Total Liabilities

TRUE FALSE

4. The Income Statement always represents the financial impact of all transactions from the firms beginning through the date of the Income Statement

TRUE FALSE

5. Gross Profit equals revenues minus all operating expenses

TRUE FALSE

6. The Current Assets category on the Balance Sheet includes all assets that will be converted to cash, sold, or consumed in the next 3 months

TRUE FALSE

7. Unearned Revenues are liabilities on the Balance Sheet

TRUE FALSE

8. The only thing that changes the Retained Earnings account is the Net Income (or Net Loss) reported on the Income Statement

TRUE FALSE

9. Balance Sheet does not always reflect the current market values of Assets

TRUE FALSE

10. Net Income, Net Revenues, Net Profits, and Net Earnings all refer to the same thing

TRUE FALSE