Question 7. True and False( 10 Marks) Answer the following with T if the statement is true, and F if it is false.

A. Working capital measures the companies ability to meet its short term obligations using its non current assets.

B. If an investor owns 10% of the shares of a company, they normally own 10 shares of the company.

C. The section of an annual report that contains managments discussion of the company's operating results is referred to as the statement of Management's Responsibility

D. The purchase of equipment costing $19500 for $1500 down( with the balance on account) will increase both sides of the statment of financial position by $18,000

E. Public Companies are prohibited from being cross listed

F. A declaration of Dividends results in an increase in liabilities and a decrease in shareholders equity

G. Carrying value of an asset is the cost of the asset that has already been expensed

H. At the beginning of the fiscal year an entity's permanent and temporary accounts should all have zero balance

I. Salary expense, Sales revenue, and depreciation expense are all examples of permanent accounts

J. When there has been a change in the number of preferred shares during a period, a weighted average number of shares must be determined for the EPS calculation