QUESTION 1

1. If a supplier ships goods f.o.b. destination, title passes to the buyer when the supplier delivers the goods to the common carrier.
2. True
3. False

QUESTION 2

1. If ending inventory is understated, then net income is understated.
2. True
3. False

QUESTION 3

1. In a basket purchase, the cost of the individual assets acquired is determined on the basis of their relative sales value.
2. True
3. False

QUESTION 4

1. Depreciation, depletion, and amortization all involve the allocation of the cost of a long-lived asset to expense.
2. True
3. False

QUESTION 5

1. The cost of an asset less its salvage value is usually its depreciation base.
2. True
3. False