Explain whether the following statements are facts:

(a) Canberra is 320 kilometres from Sydney.

(b) Depreciation expense for Kambah Pty Ltd for 2008 was $1 294 000. (This is the amount reported on the income statement.)

(c) Smoking leads to lung cancer.

(d) Sales revenue for Telex Ltd for 2009 was $2 800 000. (This is the amount reported on the income statement.)

(e) Equipment (net of accumulated depreciation of $400 000) for McNair Ltd for 2008 was worth $1 800 000. (This is the amount reported on the statement of financial positon.)

AppendixLO1