ACC101 Principles of Accounting II

TRUE / FALSE

1. The cost of a plant asset includes the invoice price, any delivery charges paid by the purchaser, installation charges, and sales tax. True or False

2. The cost of any repairs made to a plant asset because of vandalism, carelessness, or other abnormal causes would be debited to the appropriate asset account. True or False
3. The journal entry to record depreciation involves a debit to the Accumulated Depreciation account and a credit to the Depreciation Expense account. True or False
4. The book value of a plant asset is defined as the cost of the asset minus its accumulated depreciation. True or False