True or false?

1. A partner is responsible for (liable for) his/her own actions and also for actions taken by another partner on behalf of the partnership.

2. The book value of a share of stock is generally approximately equal to the market or selling price of the stock.

3.A corporation must record a liability for cash dividends on the date of record.

4. A vertical analysis uses percentages to compare each of the parts of an individual statement to a key statement figure. For example, on an income statement each item would be shown as a percentage of net sales.

5. Managerial accounting is designed to satisfy needs of external users including creditors, investors, and governmental agencies.

6. The objective of a just-in-time inventory system is to totally eliminate all inventories.

7. The primary difference between manufacturing companies and service companies is that the products provided by service companies are consumed immediately.

8. A corporation must record a liability for cash dividends on the date of record.

9. Stock of a closely-held corporation does not trade on a stock exchange.

10. A banker may perform a financial ratio analysis to assess a firm's ability to repay debt in a timely manner.

11. Vertical analysis always involves comparing financial statement elements over a span of time.

12. Financial ratio analysis is a form of horizontal analysis in that comparisons are made between different accounts in the same set of financial statements.

13. A limitation of financial statement analysis stems from the discretion of management to choose accounting procedures that cast the best light on the firm's performance.

14. Solvency ratios are used to analyze the long-term debt-paying ability and the composition of the financing structure of the firm.

15. If product costs are misclassified as selling costs, the cost per unit will be understated.