TRUE OR FALSE

1. Notes attached to the financial statement include important disclosures about losses that are unexplainable.

2.The operating cycle for most companies are longer than one year.

3.Treasury stock sales can result in a loss on the corporation's income statement.

4.The FIFO cost flow is preferred for perishable goods.

5.The book of original entry is the definition of a Journal.

6.The total amount of owners equity on a balance sheet reflects the fair market value of a business.

7.The LIFO cost flow will result in a less income tax expense for a company with low costs.

8.Deferred revenues most likely involve cash amounts that have already been received.

9.When a check is written, a cash account should be credited.

10. The heading in a balance sheet should always indicate a specific point in time.