Q.1) Answer the following questions true or false 1. there are only 2 financial statements according to GAAP 2. cash is considered a permanent account 3. Financial statements are in conformity with generally accepted accounting principles require qualified opinion 4. The financial statements do not present fairly the financial position of the firm require disclaimer 5. management is usually responsible for financial statements integrity 6. land is usually carried at acquisition cost 7. patents are valued at their market value 8. trademarks are not amortized but tested for impairment annually 9. notes payable include bonds payable 10. treasury stock is only recorded at cost 11. usually capital and reserves are listed before noncurrent liabilities 12. special income items include changes in GAAP 13. Distributions to stockholders are acceptable as long as the firm is solvent and the distributions do exceed the fair value of the assets 14. 2 for 1 split doubles the amount and value of stock 15. we usually record adjusting entries after preparing financial statements