Solved by verified expert :43. Another
name for the ledger is the book of original entry.
True False
44. In
the general journal, the year appears on the first line of the first column,
the month on the next line of the first column, and the day in the second
column opposite the month.
True False
45. The
general ledger is used to record the details of each transaction. The general
journal is used to update each account.
True False
46. When
a company receives a product previously ordered, a recordable transaction has
occurred.
True False
47. When
a business hires a new employee, a recordable transaction has occurred.
True False
48. A
transaction should be recorded when title to merchandise passes from the
supplier to the purchaser and creates an obligation to pay.
True False
49. Purchase
requests and purchase orders are economic events, and as such they affect a
company’s financial position, and are recognized in the accounting
records.
True False
50. When
a company pays an employee for work performed, it is considered an economic
event that is recorded as a transaction.
True False
51. A
purchase should usually not be recognized (recorded) before the title is
transferred because, until that point, the vendor has not fulfilled its
contractual obligation and the buyer has no liability.
True False
52. The
timing of cash flows is critical to a company’s ability to maintain adequate
liquidity so that it can pay its bills on time.
True False
53. All
sales transactions generate immediate cash.
True False
54. In
order to manage a company’s liquidity, managers and other users of financial
information must understand the difference between transactions that generate
immediate cash and those that do not.
True False
55. One
way a company can manage its expenditures is to rely on its creditors to give
it time to pay for purchases.
True False
56. All
expenses incurred by a business are paid immediately in cash.
True False
57. Purchasing
office supplies on account is an example of one way a company can take
advantage of deferring a cash payment.
True False
