The accounts payable turnover ratio can be converted to days by using the accounts payable payment period formula.

True

False

Depreciation is a cost allocation method and has nothing to do with determining an assets market value.

True

False

FOB shipping means the seller owns the inventory until it reaches the buyers premise.

True

False

The inventory turnover ratio is calculated as cost of goods sold divided by total inventory.

True

False

The amount owing on income taxes is recorded as deferred income taxes.

True

False

The accounts payable turnover ratio measures the number of times per year that a company settles their trades payable.

True

False

Unearned revenue is an example of a liability that is settled by the provision of goods or services.

True

False

Bankers will often compare current assets to current liabilities to assess liquidity.

True

False

The total accumulated depreciation on a long-term asset is also known as the asset's amortized cost.

True

False