Question 1

The assumption of going concern is the assumption that an entity will continue operating indefinitely into the future.

True or False

Question 2

The issuance of treasury stock will increase earnings per share.

True or False

Question 3

The indirect method of reporting the statement of cash flows is essentially a reconciliation between accrual based income to actual cash flow for the period.

True or False

Question 4

The recognition of gross receipts on the income statement when the amount and timing of the revenue are reasonably determinable and the earnings process is complete is related to

		Revenue realization principle
		Periodicity assumption of financial reporting
		Deferred revenue assumption of financial reporting
		Cash basis of financial reporting