ACC400 Final ExamTrue/False Questions: Each answer is worth .5 points for a tot

ACC400 Final ExamTrue/False Questions: Each answer is worth .5 points for a total of 4 points.1. The cash budget is an operating budget.A.) TrueB.) False2. The extent of internal control features adopted by a company must beevaluated in terms of cost-benefit.A.) TrueB.) False3. If a lease qualifies as an operating lease it does not add debt tot the balancesheet.A.) TrueB.) False4. The allowance method of accounting for bad debts violates the matchingprinciple.A.) TrueB.) False5. When the disposal of a significant segment occurs the income statementshould report both income from continuing operations and income (loss) fromdiscontinued operations.A.) TrueB.) False6. Interest expense on a note payable is only recorded at maturity.A.) TrueB.) False7. Treasury stock is reported as an asset on the balance sheet because treasurystock may later be resold.A.) TrueB.) False8. Paid-in capital is the amount paid in to the corporation by stockholders inexchange for shares of ownership.A.) TrueB.) False