In accounting for depreciation, acquisition cost and useful life usually are known quantities, whereas residual value is an estimate because it relates to an amount in the future.

True

False

Accumulated Depreciation reduce the companion asset to its Net Book Value.

True

False

An assets is depreciated below its residual value.

True

False

Ordinary repairs to equipment is capitalized and added to the equipment account.

True

False

Contingent liability is reported on the balance sheet if it is probable and can be estimated.

True

False

Retained Earnings is a current liability.

True

False

The LIFO inventory method allocates the oldest inventory purchase costs to cost of goods sold.

True

False

Interest revenue is reported on the balance sheet as a liability.

True

False

The normal balance of an account is the side (debit or credit) that an account decreases

True

False

A current liability is created when a customer pays cash for services to be provided in the future.

True

False

Use of the double-declining-balance method of depreciation results in higher depreciation expense during the first year of an asset's life relative to use of the straight-line depreciation method.

True

False

Cash flows from operating activities include cash flows related to the purchase or sale of (Property, Plant, Equipment) assets.

True

False

Gross margin (gross profit) is computed as sales revenue less interest expense.

True

False

1. Intangible assets with a definite life are amortized.

   True

   False