Reference no: EM132771609

True or false

Problem 1: Accounting policies are the specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements.

Problem 2: Paying taxes to the government is an example of a financing activity.

Problem 3: On a worksheet, the balance of the owners Capital account is its ending amount for the period.

Problem 4: An important use of the worksheet is as an aid in the preparation of financial statements.

Problem 5: The statement of cash flows discloses significant events related to the operating, investing, and financing activities of a business.

Problem 6: The purchase of land is an example of an investing activity.

Problem 7: Solvency refers to the availability of cash over the longer term to meet financial commitments as they fall due.

Problem 8: The purchase of equipment is an example of a financing activity.

Problem 9: The balance sheet is also known as the statement of financial position.

Problem 10: The statement of changes in equity discloses the withdrawals during the period.