The direct write-off method of uncollectible accounts makes it possible to match directly with the expense for the uncollectible accounts against sales in the same accounting period in which the sales occurred. This is the most preferred method for financial reporting purposes unless the bad debt losses are insignificant. *

True

False

The cost of long-term assets includes all expenditures necessary to acquire the asset and make it ready for its intended use. Cost is measured by the cash or cash equivalent price paid. *

True

False

Acme Consulting has the following assets at the balance sheet date: Cash in bank (savings account) $ 5,000; Amounts due from customers $ 14,000, Post-dated checks $4,000, Checking account balance $12,000. Hence, the amount of cash reported in the balance sheet is $19,000 *

True

False

A bank statement shows the checks paid and other debits charged against the account, the deposits and other credits made to the account, and the account balance after each day's transactions. *

True

False

The amount of salaries and wages owed to employees is wages and salaries payable. Mandatory payroll deductions remitted to government authorities are withholding taxes, such as personal, state, and federal income taxes, social security taxes, and Medicare taxes. Also, with every payroll, the employer incurs liabilities to pay various payroll taxes, such as social security taxes and the state and federal unemployment taxes. *

True

False