13. SCI can be prepared for a month, a quarter or a year. 7. Nominal accounts are also called real accounts. * 47. Liquidity refers to the company's capacity to pay their long-term liabilities. * 30....

True or False.

Extracted text: 13. SCI can be prepared for a month, a quarter or a year. 7. Nominal accounts are also called real accounts. * 47. Liquidity refers to the company's capacity to pay their long-term liabilities. * 30. Dividends distributed by corporation are credited against retained earnings. * 22. The SOCE is dated "as of the year ended." * 40. Common-size financial statements show standardized or relative amounts that enable the readers to make comparison of companies of different sizes. * 31. The Statement of Cash Flows shows the amount of cash received and used in the business organized according to operating, investing and financing activities. * 37. Horizontal analysis is the financial analysis technique that compares the balances of two accounts in one reporting period. *


Extracted text: 33. Payment for acquisition of merchandıse inventory are reported as investing activities. * 43. A common-size Statement of Comprehensive Income that shows cost of goods sold at 45% means that cost of goods sold is 45% of sales. * 14. Real accounts can also be found in the SCI. * 20. Net Purchases is different from Net Cost of Purchases. * 26. The partnership net income is allocated to each partner's capital using the profit and loss sharing agreement stated in the contract of partnership. 41. A common-size Statement of Financial Position presents accounts expressed as a percentage of total liabilities and equity. * 36. Financial statement analysis uses computational and analytical techniques to evaluate the company's risks, performance, financial health, and future prospects with the objective of making economic decisions. *