TRUE OR FALSE

1. The "Matching Principle of accounding requires companies to disclose all transactions, adjusted for changes in monetary inflation.

2. A small Stock Dividend provides each shareholder additional Common Stock shares that could be sold for cash

3. Lusa Pacioli, a 15th Century Italian Monk, published the first accounting text in 1491, and is ofter referred to as the "Father of Accounting

4. A$100,000 Bond carries a Face (Par) interest rate of 5% If the Blond is sold for Cash when the market interest rate is 4%: The Bond will sell at a Discount

5. State and Federal Unemployment taxes are paid by the Employer (ER)

6. Coporations are Chartered, issued, and approved by the United States Securites and Exchange Commission (SEC). in accordance with the Securities Act of 1933.

7. Research and Development Costs (R&D) are required to be recorded as an expense as incurred

8. The "Cost" of a Fixed Asset includes

The invoice price of the asset, plus All costs incurred that are required to place the asset into business use

9. Treasury Stock Shares could be used to fund an Employee Stock Ownership Plan (ESOP)

10. Earnings Per Share (EPS) is reported on the Balance Sheet

11. Cash Flow from Financing includes:

Cash received from the sale of Common Stock, Payment of Bonds Payable, and Payment of Cash Dividends

12. The purposes of the Bank Reconcilation are: Identify unrecorded transactions, such as Bank Service Fees, Explain the difference between the reported Bank Statement balance and the Company's General Ledger, and Calculate the Adjusted Cash Balance