8) Additions and improvements to a plant asset that increase the asset's operating efficiency, productive capacity, or expected useful life are generally expensed in the period incurred. 9) A loss on disposal of a plant asset occurs if the cash proceeds received from the asset sale is less than the asset's book value. 10) The asset turnover is calculated as net sales divided by ending total assets. 11) A current liability must be paid out of current earnings. 12) If any portion of a long-term debt is to be paid in the next year, the entire debt should be classified as a current liability. 13) Interest expense is reported under Other Expenses and Losses in the income statement. 14) Notes payable usually require the borrower to pay interest. 15) A note payable must always be paid before an account payable.