29. If a plant asset is retired before it is fully deprecated and no salvage values received, a. again on disposal occurs. b. a loss on disposal occurs. c. either a gain or a loss can occur. d. neither a gain nor a loss occurs. 30. Cost allocation of an intangible asset is referred to as a. amortization. b. depletion. c. accretion. d. capitalization. CHAPTER 11 QUESTIONS 31. The relationship between current liabilities and current assets is a. useful in determining income. b. useful in evaluating a company's liquidity. C. called the matching principle. d. useful in determining the amount of a company's long-term debt. 2. Most companies pay current liabilities a. out of current assets. b. by issuing interest-bearing notes payable. c. by issuing stock. d. by creating long-term liabilities. A current liability is a debt that can reasonably be expected to be paid a within one year or the operating cycle, whichever is longer. b. between 6 months and 18 months. c. out of currently recognized revenues. d. out of cash currently on hand