QUESTION $4$

Depreciation is a valuation process that assesses the fair value of the underlying asset.

True

False

QUESTION $5$

The two qualitative characteristics of accounting information that must be present for information to be useful in making decisions are relevance and faithful

representation.

True

False

QUESTION $6$

Under the FIFO cost flow assumption, firms' ending inventory reported on the balance sheet reflects the latest cost of inventory.

True

False