True or False

1.) All checks are required to have a preprinted check number

2.) Electronic Funds transfer does not use paper checks

3.) All checking accounts earn interest

4.) An endorsement may be in writing or by the use of company stamp

5.) A chain discount is a series of three or more successive discounts

6.) Break even Point is fixed cost divided by contribution margin

7.) Selling Price times 1 minus markup percent on selling price will equal the cost of markup is based on selling price

8.) Cost is equal to the selling price divided by (1+markup percent on cost) when markup is based on cost.

9.)Contribution margin is selling price plus unit cost

10.) Gross profit is net sales minus the cost of bringing merchandise into the store

11.) Exempt wages means not taxable wages

12.) Net pay - deductions= gross pay

13.) Circular E from the Internal Revenue Service contains many tax tables

14.) Payroll registers cannot record cumulative earnings

15.) Depreciation is an exact science that requires no estimation

16.) Physical deterioration is related to an assets estimated amount of usefulness

17.) MACRS is not used for tax purposes

18.) Product obsolescence means the asset has been fully depreciated

19.) Cost minus residual divided by number of years equals depreciation expense taken each year in the straight-line method

20.) A company can change from LIFO to FIFO without notifying the Internal Revenue Service

21.) The gross profit method is a a way to Estimate the cost of ending inventory without a physical count