True or false about financial statements

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Financial statements are the end product of accounting.

2. Statement is true

   Yes

   Statement

   A company's accounts follow Schedule III.

3. Statement is true

   No

   Statement

   Accounting standards give way to Schedule III.

4. Statement is true

   Yes

   Statement

   Assets are shown at cost less depreciation.

5. Statement is true

   No

   Statement

   Financial statements involve no personal judgement.

Instructions

Decide whether each statement is true or false.

Explanation