Test 7A T/F
The Adequate Disclosure accounting concept is applied when financial statements contain all
information necessary to understand a business's financial condition - ANS-true
For a service business, the revenue reported on an income statement includes components for
total expenses and net income. - ANS-true
the financial condition of a business refers to its financial strength - ANS-true
the owner's equity section of a balance sheet may report different kinds of details about owner's
equity, depending on the need of the business - ANS-true
A component percentage is the percentage relationship between one financial statement item
and the total that includes that item. - ANS-true
the matching expenses with revenue accounting concept is applied when the revenue earned
and the expenses incurred to earn that revenue are reported in the same fiscal period -
ANS-true
Information needed to prepare an income statement comes from the trial balance columns and
the income statement columns of a work sheet. - ANS-false
An amount written in parentheses on a financial statement indicates an estimate. - ANS-false
a balance sheet reports financial information over a specific period of time - ANS-false
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Hkane. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
