Classify each of the following events as an asset source (designate as "AS"), asset use (designate as "AU"), asset exchange (designate as "AX"), or not an asset source (designate as "NA").________ 1) Borrowed cash from the bank________ 2) Issued stock for cash________ 3) Invested cash in the common stock of another company________ 4) Performed services and collected cash________ 5) P aid cash for operating expense________ 6) Purchased equipment for cash________ 7) Paid dividends to stockholders________ 8) Repaid the bank loan with cash
What will be an ideal response?
1) AS 2) AS 3) AX 4) AS 5) AU 6) AX 7) AU 8) AU
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Which one of the following is an assumption made in the preparation of financial statements?
a. Financial statements are prepared for a specific entity that is distinct from the entity owners. b. Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit c. Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time. d. Market values are always assumed to be irrelevant when preparing financial statements.
Using visual parallelism through the use of color, shape, size, position or typeface is an example of what?
A) Balance B) Simplicity C) Consistency D) Emphasis E) Convention
Stock prices move opposite changes in cash flows expected from the stock in the future, but they move in the same direction as changes in rates of return.
Answer the following statement true (T) or false (F)
A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer
Indicate whether the statement is true or false