Experts suggest waiting until the end of the month to record data and reconcile accounts. (True/False)

Fiscal and calendar years differ in terms of the length of time they cover. (True/False)

A proper balance sheet should comply with the following formula: Owners Equity = Assets + Liabilities (True/False)

Income statements basically are an accounting of sales, expenses, and gross profit over the course of a specified period. (True/False)

In FIFO, a company tries to sell its oldest inventory first. (True/False)

With respect to accounting, the word accrual is used as an abbreviation of either the term accrued expense or accrued revenue. (True/False)

Under Cash Accounting, a company does not claim revenue until after taxes are filed. (True/False)

If you are decreasing your assets you are adding credits to the Assets side (left side) of the equation. (True/False)

It is not necessary to repeat the dollar sign ($) multiple times in a financial statement for every item entry. (True/False)

Great revenue and profitability has no determination on what kind of cash a company has on hand at a given period of time when using accrual basis accounting. (True/False)

Net profit is the term used to identify the revenue for a specified period before expenses have been deducted. (True/False)

It is commonly foreseen as a good idea to manage your own books. (True/False)

Bookkeepers are just another name for "Accountants" (True/False)

Journalizing refers to entering source document transactions into a Journal, whereas Posting refers to "posting" journal entries to the General Ledger. (True/False)

Net Income = Profit (True/False)

If a Trial Balance "balances", this means there are no errors in the accounting process. (True/False)

If you are decreasing your liabilities and owners' equity, then you are adding credits to the right side of the accounting equation. (True/False)

.) In an accounting system, the Journal is the book that contains original entries for financial transactions. (True/False)

FIFO stands for First-In, First-Out. (True/False)

Financial records found in a journal are kept chronologically. (True/False)

The Balance Sheet summarizes a company's assets, liabilities, and owners' equity. (True/False)

In LIFO, a company does not care which inventory it sells first. (True/False)

Source documents are the business forms that document all financial transactions of a business. (True/False)

If you are increasing your liabilities and owners' equity, then you are adding debits to the right side of the accounting equation. (True/False)

In an average cost scenario, a company determines its cost of goods by calculating the average per unit cost by taking the total cost of the inventory and dividing it by the total inventory. (True/False)

When considering financing strategies, the minimum period for which a business owner should be prepared is the length of their operating cycle. (True/False)

A depreciation expense can improve the cash flow outlook of a company. (True/False)

Should items in inventory remain unsold at the end of an accounting period, expenses pertaining to the production of such goods are deferred in inventory values. (True/False)

.) Contrary to what some people with no accounting experience may believe, a credit will always decreasea cash account. (True/False)

The idea behind accrual accounting is to keep a current an accurate picture of what is going on financially in a company in a specific point in time. (True/False)

According to the fundamental accounting equation, assets and liabilities equal owners' equity. (True/False)

Typically, the act of submitting financial documents is done in a non-structured way at an undetermined albeit convenient time for the company. (True/False)

If you are increasing your assets you are adding debits to the Assets side (left side) of the accounting equation (True/False)

Revenue in the accounting world refers to all income a company generates minus all expenses. (true/False)

Expenses are the cost of doing business, the cost of goods sold, and the use of any services. (True/False)

.) The majority of companies today will use the cash basis method of accounting. (True/False)

The fundamental difference between liabilities and owners' equity is that owners' equity is a long term loan, and liabilities are a short term loan. (True/False)

The Trial Balance is a report generated for investors, owners, and other interested parties to see how well the company is doing financially. (True/False)

Financial statements should be read from top to bottom. (True/False)