1) In the ratio funded debt to operating property for a utility, construction in progress is
a component of operating property.
2) For a public company, the SEC requires that a report be filed annually on its internal
control systems.
3) The accounting for a nonprofit institution does not include a single entity concept or
efficiency.
4) Personal financial statements are financial statements of individuals, husband and
wife, or a larger family group.
5) In general, controllers rate profitability ratios to have a higher significance than debt
ratios.
6) The assets for the balance sheet must equal the liabilities and stockholders’ equity.
7) The Statements of Financial Accounting Concepts are intended to provide the
Financial Accounting Standards Board with a common foundation and the basic
underlying reasoning on which to consider the merits of various alternative accounting
principles.
8) One is unlikely to regard a qualified opinion or an adverse opinion as casting serious
doubts on the reliability of the financial statements.
9) A firm that has been on lifo for many years may have some inventory costs that go
back ten years or more.
10) For a regulated electric utility, the account allowance for equity funds used during
construction represents the cost of borrowed funds that are used for construction.