105. Two of the steps in the accounting cycle are adjusting the accounts and closing the accounts.
True False
106. Cash-basis accounting often fails to match expenses with revenues.
True False
107. The matching concept leads accountants to select the recognition alternative that produces the lowest amount of net income.
True False
108. Adjusting entries never affect a business's cash account.
True False
109. Asset use transactions always involve the payment of cash.
True False
110. The governance of a corporation includes the roles and responsibilities of the board of directors, managers, shareholders, and auditor.
True False
111. The ethical standards for certified public accountants simply require that such accountants comply with applicable laws and regulations.
True False
112. Certified public accountants are obligated to act in a way that serves the public interest.
True False
113. The bankruptcies of Enron and WorldCom both indicated the occurrence of major audit failures.
True False
114. The Sarbanes-Oxley Act includes several significant reforms that affect the auditing profession, but it did not reduce an audit firm's ability to provide non-audit services to its audit clients.
True False
115. A business's internal controls are designed to reduce the probability of occurrence of fraud.
True False
116. Providing services to customers on account is an asset source transaction.
True False
117. An adjusting entry that decreases unearned revenue and increases service revenue is a claims exchange transaction.
True False
118. Sometimes the recognition of revenue is accompanied by an increase in liabilities.
True False
119. The collection of an account receivable is a claims exchange transaction.
True False
120. An adjusting entry to accrue salary expense is a claims exchange transaction.
True False