All business owners are personally liable for the debts of their businesses True or False
1All business owners are personally liable for the debts of their businesses.
2Generally accepted accounting principles, or GAAP, are the rules and procedures established by the Financial Accounting Standards Board, or the FASB. t
3A journal entry is an event that has a financial impact on the business that can be reliably measured.
4Double-entry accounting records only those transactions affecting the income statement.
5When using accrual accounting, revenues are recorded when the business performs a service.
6Adjusting journal entries recorded at the end of an accounting period update revenue and expense accounts, as well as asset or liability accounts.
7To maintain effective internal control, employees responsible for handling cash should have access to the accounting records.
8Differences between the bank statement and the companyâs Cash account are primarily the result of timing errors made by the company
.9Trading securities are considered to be long-term investments.
10If credit sales are $2,920,000, then one dayâs sale is equal to $8,000.
11Inventory is presented on the balance sheet at the selling price of the item.
12In a period of increasing prices, LIFO generally results in a lower tax liability.(Multiple Choice)