True/False Questions:

____ 11. Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.

____ 12. The accounts receivable turnover measures the length of time in days it takes to collect a receivable.

____ 13. When using the FIFO inventory costing method, the most recent costs are assigned to the cost of goods sold.

____ 14. Withdrawals decrease owner's equity and are listed on the income statement as a deduction from revenue.

____ 15. The consuming of goods and services while in the process of generating revenues results in expenses.

____ 16. Cash equivalents are short-term investments that will be converted to cash within 120 days.

____ 17. The amount of the "adjusted balance" for cash appearing on the bank reconciliation as of a given date should be the same amount that is shown on the balance sheet for that date.

____ 18. A business using the perpetual inventory system, with its detailed subsidiary records, does not need to take a physical inventory.

____ 19. A voucher system is an example of an internal control procedure over cash payments.

____ 20. It is required that Financial Statements be prepared using the accrual-basis of accounting in order to be in accordance with GAAP.