Question 9 (1 point) Management should select the depreciation method that O is easiest to apply. best reflects the pattern in which the asset's future economic benefits are to be consumed. best measures the asset's fair value each period over its useful life. is required by the government. Question 10 (1 point) The date on which a cash dividend becomes a binding legal obligation is on the declaration date. O last day of the fiscal year. payment date. date of record. Question 11 (1 point) If the amount of bad debts expense is understated at year end, then net income will be understated. net Accounts Receivable will be overstated. shareholders' equity will be understated. O O Allowance for Doubtful Accounts will be overstated. Question 12 (1 point) A company has average inventory on hand of $40,000 and its average days in inventory is 26.4 days. What is the cost of goods sold? $553,030 $1,056,000 $486,667 $480,000 Question 13 (1 point) When an account is written off using the allowance method for uncollectible accounts, accounts receivable decreases and the allowance account decreases. increases and the allowance account increases. O decreases and the allowance account increases. o is unchanged and the allowance account increases. Question 14 (1 point) Failure to record a liability will probably result in overstated total assets. have no effect on net income. o o result in overstated net income. result in overstated total liabilities and shareholders' equity. Question 15 (1 point) The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to increase both total assets and shareholders' equity. O decrease both total assets and shareholders' equity. O decrease both total liabilities and shareholders' equity. o increase both total expenses and total liabilities. Question 16 (1 point) Which of the following statements is false? Most notes and bank loans are non-interest bearing. Notes payable usually require the borrower to pay interest. d o Notes payable are sometimes used instead of accounts payable. at a fixed Notes payable reflect a promise to repay a specified amount of money eith future date or on demand