One major issue associated with long-term debt is the classification of the short-term

portion of long-term debt that is due in the next year.

tRUE
For most companies, stockholders' equity includes the following three accounts:
preferred stock, paid-in capital, and retained earnings.
fALSE
Three types of transactions usually occur in stockholders' equity: issuance of stock,
repurchase of stock, and payment of dividends.
TRUE
The repurchase of stock includes the reacquisition of stock (treasury stock), but not the
retirement of stock.
FALSE
The registrar is responsible for preparing stock certificates and maintaining adequate
stockholders' records.
FALSE
The dividend-disbursing agent prepares and mails dividends checks to the stockholders
as of the date of declaration.
FALSE
Substantive analytical procedures can be used extensively to test revenue and expense
accounts.
TRUE
Income statement accounts must be accounted for in accordance with GAAP.
tRUE
When auditing capital stock accounts, the cutoff assertion is the most important to
consider.
FALSE
The occurrence assertion is being tested when the auditor vouches stock repurchases
to the canceled stock certificates.
TRUE