Reference no: EM132771606

True or false

Question 1: Liquidity refers to the availability of cash in the near future after taking account of the financial commitments over this period,

Question 2: When the Income Statement columns of the worksheet are initially footed, they should be out of balance by the amount of profit or loss.

Question 3: Assets, liabilities, capital and withdrawal accounts are extended to the Income Statement columns of the worksheet.

Question 4: The worksheet helps the accountant discover existing posting and calculation errors.

Question 5: An income statement relates to a specified period while a balance sheet shows the financial position of the entity at a particular date.

Question 6: Financial flexibility is the ability to take effective actions to alter the amounts and timings of cash flows so that it can respond to unexpected needs and opportunities.

Question 7: When the Balance Sheet columns of the worksheet are initially footed, they should be in balance.

Question 8: The worksheet is a convenient device for completing the accounting cycle.

Question 9: The excess of expenses over revenues is called loss.

Question 10: The statement of changes in equity relates the income statement to the balance sheet by showing how the owner's Capital account changed during the accounting period.