True/False

2.____ An increase in net assets of a business due to the sale of its inventory is a gain.

3. ____ Retained earnings represents amounts contributed to the business by its owners.

4. ____ Assets and liabilities can be broken down into the categories of current and noncurrent.

5. ____ Income tax expense is typically reported separately from other expenses.

6. ____ Conservatism helps companies look better to potential investors.

7. ____ Dividends paid are reported on the balance sheet.

8. ____ Companies receive money each time their stock is sold on a stock exchange.

9. ____ A balance sheet should always balance.

10. ____ The statement of cash flows is broken up into operating, investing, and financing activities.

11. ____ Notes are considered part of a complete set of financial statements.

12. ____ Sales revenue less cost of goods sold is referred to as net income.

13. ____ A gain is the amount of net income earned by a company over its life less any dividends it has paid.

14. ____ The purpose of the balance sheet is to report the assets and liabilities of a company on a specific date. MULTIPLE