Indicate in the space provided after the statement, whether the following statements are True (T) or False (F).

1. Current assets include all of the following: cash, inventory, equipment, supplies, and accounts

receivable. _________

2. The current ratio is useful in determining a companys ability to pay obligations when they

become due. ____________

3. The going-concern assumption infers that a company will continue to operate for at least the

next year. __________

4. According to the historical cost principle, assets are measured at the exchange price at the time

the activity occurs. ____________

5. Publicly accountable enterprises as well as private enterprises in Canada are required to

use IFRS (International Financial Reporting Standards). _______________

6. It is necessary to account for company transactions separately from personal transactions of

the owner only if the company has more than one shareholder. ____________

7. Matching requires expenses be recorded and reported in the same period as the revenue that it

helped to generate. ____________

8. Accrued revenue is recognized when cash is received. _____________

9. When an expense is incurred prior to the payment of cash for that expense, an adjusting

journal entry that increases an expense account and decreases a liability is prepared. _________

10. Risk assessment is one of the elements of a good system of internal control.___________

11. The expenditures of petty cash are not recorded in the accounting records until the fund is

replenished.____________

12. When the amount of cash in the cash register exceeds the amount in the cash register tapes,

the difference is debited to Cash Over and Short account.___________