True-False Place your answers to the left (2 points each) When a company buys a building, realtor commissions are NOT included in the cost of the building. Double-declining balance is an accelerated method of calculating depreciation where salvage value is NOT part of the initial computation. 12] When an asset is disposed of, the current period's depreciation expense account must be updated to the time of the disposal. 13] 14] Amortization is computed over the useful life of the intangible asset using the double-declining-balance method. In computing depletion expense, salvage value is not part of the computation. [6] The return on assets and the fixed asset turnover are usually computed monthly. 17) Notes payable would be an example of a known liability. 8] Sales tax liabilities are classified as long-term payables. 9 Warranty expense is always recorded in the period that the warranty claims are [10] A mortgage is a secured note because the building will serve as collateral 11] Stockholders' Equity consists of contributed capital and paid-in capital. [12] Retained Earnings represent internally generated capital. [13] A company can have a profit or loss when buying or selling its own stock paid