1)An expenditure to improve an asset can be added to the depreciable basis of that asset if the expenditure extends the life of the asset.

True

False

2)Identifiable intangible assets are intangible assets that can be separated from the company and sold, transferred, licensed, rented, or exchanged.

True

False

3)The net price method of recording sales and receivables generally requires less record keeping and is more cost effective

True

False

4)In order for a derivative to be considered a hedge, it must be mostly effective in offsetting a substantial amount of risk exposure associated with changes in fair values or cash flows of the hedged item.

True

False

5)Inventory costs include all costs directly or indirectly associated with bringing an item to its existing condition or location for sale.

True

False

6)When a company purchases investments with the intent to profit on short-term changes in price, the company should classify these investments as available-for-sale.

True

False