TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 66) Separate customer accounts receivable are called subsidiary accounts. 67) Under U.S. GAAP, plant assets are reported at book value on the balance sheet. 68) Short Company owns a 2% investment in the common stock of Long Company. The receipt of a cash dividend from Long will have no effect on Short's total equity 69) Warranties pose an accounting challenge because a company does not know which or how many products will have to be repaired. 69) 70) Debt is a less expensive source of capital than stock. 70 70) - 62) Classify each of the following expenditures as capital expenditure (CE) or revenue expenditure (RE) Repair of transmission or engine Sales tax paid on the purchase price Training of personnel for initial operation of machinery Modification for new use Surround, Inc. Comparative Balance Sheet Dec. 31, 2019 $29,000 31,000 53,000 $113,000 120,000 $233,000 Assets Current Assets: Cash and Cash Equivalents Account Receivable, Net Merchandise Inventory Total Current Assets Property, Plant, and Equipment, Net Total Assets Liabilities Current Liabilities: Accounts Payable Notes Payable Total Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $4300 2900 $7200 90,000 $97,200 $31,000 104,800 $135,800 $233,000 Calculate the debt to equity ratio. (Round your answer to two decimal places.) A) 0.72 B) 1.16 C) 0.05 D) 0.42