1. Which of the following is a source of cash? True or flase?

2. Liabilities normally have a left-hand balance. True or flase?

3. Current Assets do not necessarily equal Current Liabilities. True or flase?

4. Liabilities are the claims of creditors to a company's resources. True or flase?

5. A well-presented statement of cash flows cannot provide all of the information found in a balance sheet and income statement. True or flase?

6. The income statement shows the revenues, expenses and net income of an enterprise over a period of time. True or flase?

7. Which organization is recognized today as the authoritative voice of accounting rules and principles?

A) S.E.C.

B) A.I.C.P.A

C) F.A.S.B.

D) A.A.A.

8. Debt-to-Equity and Debt-to Assets ratios usually provide a clear picture of the financial leverage employed by a firm. The higher the level of debt, the higher the implied financial risk. An informed reader, however, understands that it is appropriate to draw this general conclusion only when comparing firms within the same or very similar industries. True or flase?

9. Debits always decrease an account, while credits increase an account. True or flase?

10. Accounting is a set of rules and methods by which economic information of a business is collected and made into reports that are useful to end users. True or flase?

11. Credits are generally good and debits are generally bad. True or flase?

12. A well-presented statement of cash flows can provide all of the information found in a balance sheet and income statement. True or flase?

13. Financial accounting, unlike managerial accounting, has firm guidelines that it must follow. True or flase?