I) Which of the following things about the income statement is not true?

a) The income statement discloses the financial condition of the company at aparticularpoint in time

b) The income statement is a required component of SEC filing for publicly traded companies

c) The income statement helps investors understand how a firm performed duringa period of time

d) The income statement is one of the most basic financial statements and receives a lot of attention from investors

II) The balance sheet discloses to investors which of the following things?

a) The amount of cash the firm had on a specific date

b) The amount of sales generated by the firm last period

c) The value of loans the company owes to its lenders

d) The total amount of money owed by the company to the companys vendors

e) The value ofall ofthe uncollected sales

f) All except (b)

g) All except (e)

III) When Nike sells a pair of shoes, they ______ cost of sales on the income statement.

a) Debit

b) Credit

IV) The matching principle tells us which of the following:

a) Expenses associated with a sale should be recognized in the same period of the sale

b) Accounts receivable must be matched to specific customers that owe us money

c) A firm'sassets must in total equal the sum of its liabilities andstockholders'equity

d) The assets reported on the balance sheet for a specific time period should be matched to the revenues that are recognized during the same time period on the income statement.