Question 26 Estimating and recording product warranty expense in the period of the sale best follows the materiality concept. True False Question 27 Obligations that depend on past events and that are based on future possible events are contingent liabilities. True False wastian uestion 30 The double-declining balance depreciation method calculates depreciation each year by taking twice the straight-line rate times the book value of the asset at the beginning of each y True False Question 34 One of the weaknesses of the direct write-off method is that it can go against the matching principle with its write offs. True O False Question 36 A note receivable due in 18 months is entirely listed on the balance sheet under the caption long-term asset. O True O False