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Solution Library
Check True Or False Statements
Question
1. I. The favorable and unfavorable trends and significant events or uncertainties in the areas of liquidity, capital resources, and the results o operations can all be found in the management discussion and analysis section of the annual report.
II. Generally accepted accounting principles provide a measure of uniformity and do not allow discretion in the preparation of financial statements.
- Only Statement I is true.
- Only Statement II is true.
- Both Statements I and II are true.
- Both Statements I and II are false.
2. All of the following statements are false except:
- A significant change in 1998 eliminates the need for companies to report comprehensive income.
- Corporations must use straight-line depreciation.
- Using two sets of accounting rules – one for reporting purposes and one for tax purposes – is illegal.
- The globalization of business activity has resulted in the need for a set of accounting rules that would be uniform in all countries.
Summary
The multiple questions belong to Finance. The 1st and 2nd questions are about whether or not the two statements are true or false.
Total Word Count NA
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