Allowance for Doubtful Account and Accumulated Depreciation Account are both considered as contra-asset accounts as these accounts reduce the value of the assets section of the balance sheet. *

True

False

The direct write-off method is the most preferred method for the disposition of bad debts by most publicly-traded companies as this is an easier method and takes fewer steps to complete the write-off. *

True

False

You work for Acme Corporation and you have taken a short-term loan of $1,500 from the company. You have asked the company to adjust this amount with your next month's salary. The company will record this transaction as a Salaries and Wages Payable in their accounting software. *

True

False

Declining-balance method of depreciation allocates an equal amount of annual depreciation through an asset's useful life and is the most common method used by many companies. *

True

False

Acme Company purchased a piece of land for $156,000. The real estate broker commission was $14,000 and the cost of putting a fence and driveway was $29,000. The accountant will record the cost of land at $156,000 as an Asset in the accounting software. *

True

False