TRUE OR FALSE

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

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

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

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

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

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

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

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

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

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