1. It is necessary for a company to use the same depreciation method for all of its depreciable assets.

2. Receiving payment prior to delivering goods or services causes a current liability to be incurred.

3. An employee's take home pay is equal to gross pay less all voluntary deductions.

4. For paying their payroll, most employers use payroll checks drawn on a special bank account.

5. Organizational expenses are classified as intangible assets on the balance sheet.

6. The declaration of a cash dividend decreases a corporation's stockholders equity and decreases its assets.

7. A corporation has 10,000 shares of $100 par value stock outstanding. If the corporation issues a 5-for-1 stock split, the number of shares outstanding after the split will be 40,000.

8. A bond is usually divided into a number of individual bonds of $500 each.

9. The total interest expense over the entire life of a bond is equal to the sum of the interest payments plus the total discount or minus the total premium related to the bond.

10. The special fund that is set aside to provide for the payment of bonds at maturity is called a sinking fund.

TRUE OR FALSE?? FOR EACH