49 to 60

Use the SCANTRON answer sheet for the following true/false questions. A = True B = False True/False (1 point each) 49. TF Dividends are reported on the balance sheet in stockholders' equity. 50. T F Accounting communicates financial information about a business to both internal and external users. 51. TF The liability of partners in a partnership is limited to the amount of their investment 52. TF Accumulated depreciation appears in the property, plant, and equipment section of the balance sheet. 53. T F Under a perpetual inventory system, when an invoice is paid within the discount period, the amount of the discount Increases Inventory. 54. T F If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show more gross profit for the period, than if it had used the FIFO inventory method 55. T F The Allowance for Doubtful Accounts is a contra asset account. 6. T F A company that has a low accounts receivable turnover may have a liquidity problem. 7. F A corporation must be incorporated in each state in which it does business. B. T F A stock dividend is a pro rata distribution of cash to a corporation's stockholde . T F Bonds are a form of interest-bearing notes payable. TF I wish I were a giraffe. T F Summer is great