Generally speaking, property, plant, and equipment and intangible assets are not short-term assets. Rather, they are long-term, revenue-producing assets.

Group of answer choices

True

False

2. Johnson Murphy Inc. acquired an asset by issuing a note payable of $18,000 with an 8% stated interest rate. The assets initial valuation equals the amount of the note plus the present value of the future interest payments.

Group of answer choices

True

False

3. Sierra Pacific Inc., a large timber company, should include in the initial valuation/capitalization of a natural resource, the expected cost of an asset retirement obligation or liability to be settled at the end of the natural resources useful life to the company.

Group of answer choices

True

False

4. Liberty Restoration exchanged an old gutter machine for a new one (a nonmonetary exchange). Neither Liberty nor the supplier could accurately determine the fair value of either the old or the new gutter machine. For Liberty, the new gutter machine should be initially valued at the book value of the old gutter machine given up.

Group of answer choices

True

False