Indicate whether the following statements are true or false. If false indicate how to correct the statement.
(1) The historical cost principle dictates that companies record assets at their cost. In the later periods, however, the fair value of the assets must be used, if fair value is higher than its' cost.
(2) Relevance means that financial information matches what happened; the information is factual.
(3) The revenue recognition principle states that expenses should be matched with revenues.
(4) Cash flows from operating activities is always less than or equal to the net income of an organization.
(5) In horizontal analysis, each item is expressed as a percentage of the base year's amount.

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Indicate whether the following statements are true or false. If false indicate how to correct the statement.

(1) The historical cost principle dictates that companies record assets at their cost. In the later periods, however, the fair value of the assets must be used, if fair value is higher than its' cost.
(2) Relevance means that financial information matches what happened; the information is factual.
(3) The revenue recognition principle states that expenses should be matched with revenues.
(4) Cash flows from operating activities is always less than or equal to the net income of an organization.
(5) In horizontal analysis, each item is expressed as a percentage of the base year's amount.

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Indicate whether the following statements are true or false. If false indicate how to correct the statement.(1) The historical cost principle dictates that companies record assets at their cost. In the later periods, however, the fair value of the assets must be used, if fair value is higher than it

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