The balance sheet shows a company's net income or loss due to earnings activities over a period of time. True Answer: B Explanation: Diff: 2 Topic: Financial Statements Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Bloom's: Understand Communication BB Industry; FN Reporting The Financial Accounting Standards is the governmental agency that sets both broad and specific accounting principles. True False Answer: B Explanation: Diff: 2 Topic: Generally Accepted Accounting Principles Learning Objective: 01-C4 Explain generally accepted accounting principles and define and apply several accounting principles. Bloom's: Understand AACSB: Communication AICPA: FN Reporting; BB Legal The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. True Answer: B Explanation: Diff: 2 Topic: Generally Accepted Accounting Principles Learning Objective: 01-C4 Explain generally accepted accounting principles and define and apply several accounting principles. Bloom's: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making
The balance sheet shows a company's net income or loss due to earnings activities over a period of time. True Answer: B Explanation: Diff: 2 Topic: Financial Statements Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Bloom's: Understand Communication BB Industry; FN Reporting The Financial Accounting Standards is the governmental agency that sets both broad and specific accounting principles. True False Answer: B Explanation: Diff: 2 Topic: Generally Accepted Accounting Principles Learning Objective: 01-C4 Explain generally accepted accounting principles and define and apply several accounting principles. Bloom's: Understand AACSB: Communication AICPA: FN Reporting; BB Legal The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. True Answer: B Explanation: Diff: 2 Topic: Generally Accepted Accounting Principles Learning Objective: 01-C4 Explain generally accepted accounting principles and define and apply several accounting principles. Bloom's: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making