QUESTION 7

What do we mean when we talk about historical cost?

Acquisition cost of fixed assets

Sale price - acquisition cost

Decreases in the fixed assets account

Increase in current asset accounts

QUESTION 8

If the company's income is less than its expenses within the accounting period, the company will make a profit

True

Fake

QUESTION 9

The Profit or Loss account is calculated in the Income Statement and added as an account within the accounts of _________ within the Balance Sheet.

QUESTION 10

By moving transactions from the journal to the general ledger, we are grouping them by accounts, not by amounts or dates

True

Fake