Please answer the following statements as either True or False. The primary objective of financial accounting is to provide internal reports called financial statements to help users analyze an organization's activities. The objectivity principle means that financial information is reliable and verifiable. Net income is the excess of expenses over revenues, whereas net loss is the excess of revenues over expenses.
Source documents are necessary for proper internal control.
A company's fiscal year must correspond with the calendar year. Accrued expenses reflect transactions where cash is paid before a related expense is recognized. The closing process is a step in the accounting cycle that prepares accounts for the next accounting period. Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle. Cost of goods sold is reported on the income statement and the balance sheet.