1.Theincomestatementmeasurestheflowoffundsinto(i.e.revenue)andoutof(i.e.expenses)thefirmovera certaintimeperiod.It is alwaysbasedonaccountingdata. a.True b.False True ANSWER: Easy DIFFICULTY: Incomestatement TOPICS: 2.Thebalancesheetis afinancialstatementmeasuringtheflowoffundsintoandoutofvariousaccountsovertime whiletheincomestatementmeasurestheprogressofthefirmat apointin time. a.True b.False False ANSWER: Easy DIFFICULTY: Financialstatements TOPICS: 3.Anincreaseinanassetaccountisasourceofcash,whereasanincreaseinaliabilityaccountisauseofcash. a.True b.False False ANSWER: Easy DIFFICULTY: Sourcesandusesofcash TOPICS: 4.Depreciation,asshownontheincomestatement,isregardedasauseofcashbecauseitisanexpense. a.True b.False False ANSWER: Easy DIFFICULTY: Sourcesandusesofcash TOPICS:
1.Theincomestatementmeasurestheflowoffundsinto(i.e.revenue)andoutof(i.e.expenses)thefirmovera certaintimeperiod.It is alwaysbasedonaccountingdata. a.True b.False ANSWER: True DIFFICULTY: Easy TOPICS: Incomestatement 2.Thebalancesheetis afinancialstatementmeasuringtheflowoffundsintoandoutofvariousaccountsovertime whiletheincomestatementmeasurestheprogressofthefirmat apointin time. a.True b.False ANSWER: False DIFFICULTY: Easy TOPICS: Financialstatements 3.Anincreaseinanassetaccountisasourceofcash,whereasanincreaseinaliabilityaccountisauseofcash. a.True b.False ANSWER: False DIFFICULTY: Easy TOPICS: Sourcesandusesofcash 4.Depreciation,asshownontheincomestatement,isregardedasauseofcashbecauseitisanexpense. a.True b.False ANSWER: False DIFFICULTY: Easy TOPICS: Sourcesandusesofcash
Test-Bank-CFIN-4-4th-Edition-Besley.docx