Multiple Choice Answers

The beginning asset account balances for April are the __________.
a. Accrued as April progresses
b. Zero, since it is a new month
c. Transactions from April
d. Ending balances from March
Adherence to good internal controls would require the hiring of competent employees and then rotating them from job to job.

True
False

Declaring and paying cash dividends affects which financial statement elements?

a. Cash only
b. Stockholders’ equity only
c. Cash and stockholders’ equity
d. Cash and capital stock

Income that cannot be associated definitely with operations, such as a gain from the sale of a fixed asset, is listed as Other Income on the multiple-step income statement.
True
False

The primary advantage of the cash basis of accounting is __________.
a. The amounts match accrual basis
b. Expenses are not recorded
c. Simplicity