Intermediate accounting

uture value of an ordinary annuity table is used when peyments are invested at the begnning a) True b) False Interest is the excess cash received or repaid over and above the amount lent or borrowed a) True b) False In the gross method, sales discounts are reported as a deduction from sales 2) 3) a) True b) False 4) The percentage-of-sales method results in a more accurate valuation of receivables on the balance sheet a) True b) False 5) A disadvantage of LIFO is that it does not match more recent costs against current revenues as well as FiFO a) True b) False Purchase Discounts Lost is a financial expense and is reported in the "other expenses and losses" section of the 6) income statement a) True b) False n) When capitalizing interest during construction of an asset, an imputed interest cost on stock financing must included. a) True b) False If a company scraps an asset without any cash recovery, it recognizes a loss equal to the asset's book value a) True b) False The profit margin on sales ratio is a measure for analyzing the use of property, plant, and equipment 8) 9)