1.

Which of the following statements is not true regarding current liabilities?

Select one:

a. Include taxes payable and wages payable

b. Obligations due for a period of time greater than one year

c. Arise from receiving goods or services prior to making payment

d. Will be paid out of current assets

2.

Which of the following statements is not true?

Select one:

a. Accounts payable always require payment of interest.

b. Vendors and suppliers help to finance operations

c. Notes and bonds require interest to be paid periodically.

d. Debt financing includes issuing notes and bonds.

3. A machine with a useful life of 6 years and a residual value of $3,000 was purchased at the beginning of year 1 for $30,000. The machine was sold for $15,000 on April 1 in year 4.

What is the entry the company would make annually? (which accounts increase, which decrease?)