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Flashcards in Chp1-Quiz Deck (10):
1

Matching refers to including all expenses incurred to realize the revenues reported.

TRUE

2

Which of the following ratios is not used in the duPont formula?

debt/equity

3

Depreciation is a noncash expense.

TRUE

4

Depreciation is a part of

Cash flow from operating activities

5

The net result of the duPont formula is return on total assets.

FALSE

6

The P/E ratio indicates the stock market's opinion of a company's prospects for growth and earnings as well as the market's perception of the firm's risk.

TRUE

7

Although the cash flow statement using the indirect method is useful, it does not show net income for the period.

FALSE

8

Comprehensive Income of the period is shown on the

Income Statement

9

Depreciation expense is a good example of which of the following generally accepted accounting principles?

Matching

10

The ratio which many observers use to quantify the stock market's opinion of a firm is the current ratio.

FALSE