36-Property, plant, and equipment are assets that are expected to serve the business for many years. True or False 37- An income statement is an itemized statement that provides information regarding the status of the assets, liabilities, and owner's equity of a business enterprise as of a specified date, True or False 38-Long-term liabilities may also be called long-term debt. True or False 39-A post-closing trial balance is used to prove the equality of debit and credit balances in the general ledger accounts after the closing entries have been posted. True or False 40-The heading for a balance sheet includes the name of the business, the title of the statement, and a period of time. True or False 41-On any given day, it is unlikely that the balance in the cash account on the depositor's books will be the same as the bank balance. True or False 42-It is good business policy that all cash and cash items received be deposited daily in a bank. True or False 43-A cash shortage is entered as a debit to Cash and a credit to Cash Short and Over, True or False 44-To establish a change fund, Cash should be credited and Change Fund should be debited. Thue or False 45-If the cash short and over account has a debit balance at the end of the fiscal year, the balance represents a revenue. True or False 46- The Fair Labor Standards Act provides that all employees covered by the act must be paid one and one-half times the regular rate for all hours worked over 40 per week. True or False 47-Compensation for managerial or administrative services usually is expressed in biweekly, monthly. or annual terms and is called wages. True or False- 48-Government laws and regulations regarding payroll are much more complex for employees than for independent contractors. True or False 49- The difference between an independent contractor and an employee is an important legal distinction. True or False 50-A purely manual system of record keeping is one in which all records, journals, and ledgers are prepared by hand: True or False 51-The FUTA tax applies to all employee earnings throughout the year. True or False 52-The employer must pay the amount owed for Social Security and Medicare by the business plus the amount withheld from the employee to the IRS. True or False 53- Employers' payroll taxes include PICA, FUTA, and SUTA taxes. True or False 54-The date by which federal income tax withholding, Social Security, and Medicare taxes must be paid depends on the amount of these taxes. True or False 55-To encourage customers who purchase merchandise on account to pay promptly, a cash discount is usually offered. True or False 56-A sales ticket is a document created as evidence of a sale in a retail business. True or False Merchandise returned by the customer for a refund is called a sales return. True or False 57-The sales account is debited for the selling price of merchandise sold during the period. True or False 58-Gross sales less sales returns and allowances and sales discounts equal net sales. True or False 59-Major documents used in the purchasing process are the purchase requisition, purchase order, receiving report, and purchase invoice. True or False 60-Freight-In is an adjunct-purchases account to which transportation charges on merchandise purchases are debited. True or False Page 2 I 61-The purchases discounts account is debited for cash discounts to customers. True or False. 62-A form used to request the purchasing department to purchase merchandise or other property is known as a purchase order. True or False 63-Gross profit is a measure of the amount of sales dollars available to cover expenses after covering the cost of the goods sold. True or False 64-Transactions that are similar in type and recorded frequently are likely to have a special journal. True or False 65-A journal designed for entering only sales on account is called an accounts payable journal. True or False 66-"S14" in the Posting Reference column of a general ledger account would indicate that amount came from the sales journal on the 14 of the month. True or False 67-When a business uses a subsidiary accounts receivable ledger, there is no need to keep a summary accounts receivable account in the general ledger. True or False 68-The sales journal can be used to enter any kind of sales, including cash sales and sales on account. True or False