1.Accounts receivable:

arise from the purchase of goods or services on credit.

are amounts owed to a business by its customers.

will be collected within the discount period or when due.

are reported on the income statement.

2.A category of long-lived assets that are depleted over time is:

delivery equipment.

natural resources.

machinery.

cash.

3.A company bought land and a building for $128,000. The building has a useful life of 20 years. Why should the company split the $128,000 cost between the land and the building?

a.Land is not depreciated, while the building will be depreciated over its 20year useful life.

b.The cost should not be split between the land and building.

c.The land will be depreciated over 40 years and the building will be depreciated over 20 years.

d.Both the land and the building will be depreciated over 20 years.