True or false

1. One of the objectives of internal control is to provide reasonable assurance that assets are safeguarded and used for business purposes.

2. The petty cash fund can only be replenished at the end of a month

3. After a bank reconciliation has been completed journal entries must be made to adjust the bank statement balance to its correct balance

4. The allowance for doubtful accounts is contra expense account

5. The due date of a notes receivable is also referred to as the maturity date

6. If the maker of a note fails to pay the note at maturity the note is classified as dishonored note receivable

7. The cost of land would include survey and title fees

8. The book value of an asset is its original cost minus accumulated depreciation

9. Long term liabilities debit due beyond 30 days

10. fica tax withheld from employees contribute to two federal programs social security and Medicare

11. All contingent liabilities are recorded and disclosed

12. A corporation is not an entity which is separate and distinct from its owners

13. Retained earnings are a part of stockholders' equity

14. The purchase of treasury stock by a corporation increases total assets and stockholders' equity

15. A 10 stock dividend will increase the number of shares outstanding and the book value per share will decrease

16. Capital stock that has contractual preferences over common stock in certain areas is called preferred stock

17. If the market interest rate is greater than the contractual interest rate bonds will sell

18. If $800000, 8% bonds are issued on January 1, and pay interest semiannually the amount of interest paid on July 1 will be 32000

19. A stock split results in an in the stated value per share of stock

20. Discount on bonds is an additional cost of borrowing and should be recorded as interest expense over the life of the bonds