1. Expenses are extended into the Income Statement columns as debits, revenues as credits. True/ false

1. Closing the revenue and expense accounts reduces them to a zero balance. True/ False

1. The typical division of liabilities on a classified balance sheet is:

A. by size of debt.

B. short-term, medium-term, and long-term.

C. current and long-term.

D. dependent on the size of the company.

1. Under the cash basis of accounting, most expenses and revenues are recorded when cash is paid out or received. true/ false

1. Which statement concerning the Accumulated Depreciation account is false?

A.It has a debit balance.

B.It is a contra asset account.

C.The account balance is needed in determining the book value of the related asset.

D.It appears on the balance sheet.

6.Depreciation calculated on the straight-line basis:

A.ignores the estimated useful life of the asset.

B.results in high expense in early years, lower expense in later years.

C.spreads the depreciable cost evenly over the asset's life.

D.ignores the estimated salvage value.

7.The objective of depreciation accounting is to spread the depreciable amount of an asset over its estimated useful life. True/ false