1. One company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right.

   True

   False

2.65 points

QUESTION 32

1. Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle.

   True

   False

2.65 points

QUESTION 33

1. A piece of machinery held for continued use in the business would usually be stated in the balance sheet at:

   		its net book value (historical cost less depreciation)
   		its current value to the business
   		its current replacement cost
   		a realistic second-hand or scrap value

2.65 points

QUESTION 34

1. The adjusting entry for depreciation is a ____ to depreciation expense and _____ to accumulated depreciation.

   		credit, debit
   		debit, credit
   		credit, credit
   		debit, debit

2.65 points

QUESTION 35

1. Depreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return.

   True

   False

2.65 points

QUESTION 36

1. Which of the following assets is not an intangible asset?

   		Inventory
   		Patent
   		Goodwill
   		Trademark

2.65 points

QUESTION 37

1. Fixed assets are normally used in the business on a long-term basis

   True

   False

2.65 points

QUESTION 38

1. The account Inventory will appear on the balance sheet as a current asset at an amount that often reflects the __________ of the merchandise on hand.

   		Cost
   		Sales Value