41. Foreign companies whose shares are traded on U.S. stock markets must use GAAP.
a42.The study of accounting is not useful for a business career unless your career objective is to become an accountant.
a43.Expressing an opinion as to the fairness of the information presented in financialstatements is a service performed by CAs and CPAs.
Additional True-False Questions
44. Identifying is the process of keeping a chronological diary of events measured in dollars and cents.
45. Management consulting includes examining the financial statements of companies and expressing an opinion as to the fairness of their presentation.
46. Accountants do not have to worry about issues of ethics.
47. The monetary unit assumption requires that all dollar amounts be rounded to the nearest dollar.
48. The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets.
49. External transactions involve economic events between the company and some other enterprise or party.
50. In the retained earnings statement, revenues are listed first, followed by expenses, and net income (or net loss).