Questions and Problems Questions: Question (I): Indicate whether each of the following statements is true or false (use letter "T" for true and letter "F" for false). Correct the false statements: (1) A balance sheet is a financial statement which shows the financial position of a business at a specific date. owner's equity in the business. company's operations during a specific period. is required to go from cash to cash in producing revenues. (2) An income statement shows the change in the amount of (3) Owner's equity statement shows the cash effects of a (4) The operating cycle of a company is the average of time that (5) Current assets are not intended for use or consumption (6) Long-term investments are tangible resources that are used (7) Intangible assets are non current resources that don not have (8) Current liabilities are obligations that are expected to be paid within the business. in the business and not intended for sale. physical substance. after one year or an operating cycle, which ever is longer 15