1.The time period assumption:

Multiple Choice

• Means that we can express transactions and events in monetary, or money, units.
• Means that a business is accounted for separately from other business entities, including its owners.
• Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
• Prescribes that a company record the expenses it incurred to generate the revenue reported.
• Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

2.Cash investments by stockholders are listed on which of the following statement(s)?

Multiple Choice

• Income statement.
• Balance sheet.
• Statement of retained earnings and statement of cash flows.
• Statement of cash flows only.
• Statement of retained earnings only.