When a customer dishonors the payment on the maturity date of a Notes Receivable, it is continued to be recorded as an asset under the Notes Receivables section under the same terms mentioned in the original note.* O True O False Most of the long-term tangible Assets (except Land) are expensed out throughout its useful life as the ability of the asset to contribute to the revenue- generating activities declines over its useful life. O True O False The direct write-off method is the most preferred method for the disposition of bad debts by most publicly-traded companies as this is an easier method and takes fewer steps to complete the write-off. * O True O False Acme Company is in need of $95,000 for an urgent machine repair work but doesn't have enough cash to support this work. Acme has a Cash reserve of $35,000 but does not want to use this cash on the repair work. The Accounts Receivables balance is $225,000. One way to manage this fund shortage is to sell a part of the Accounts Receivables to a factor or a bank at a discounted price to raise this emergency money.* a True O False You work for Acme Corporation and you have taken a short-term loan of $1,500 from the company. You have asked the company to adjust this amount with your next month's salary. The company will record this transaction as a Salaries and Wages Payable in their accounting software. True O False When the customer returns 5% of the goods you sold them, you will only consider 95% of your original sales amount as the outstanding receivables as you think this is the net realizable value that the customer owes you. O True O False Acme Company purchased a piece of land for $156,000. The real estate broker commission was $14,000 and the cost of putting a fence and driveway was $29,000. The accountant will record the cost of land at $156,000 as an Asset in the accounting software. True O False Acme Company purchased a building 10 years ago at $467,000 and this has been the value of the asset since then. The current market valuation conducted by a reputed real estate company of the building is $989,000. The General Manager presented a proposal to the Board on whether the company should update the value of the building to its current market price to increase the overall Asset valuation of the company. The General Manager proposed that this change will increase investor confidence and attract more investors to invest in the company. The board rejected the proposal and thinks this would be against the standard accounting principles. The decision of the board is (select "true" if right, and "false" if wrong)- * True O False Allowance for Doubtful Account and Accumulated Depreciation Account are both considered as contra-asset accounts as these accounts reduce the value of the assets section of the balance sheet. True O False Declining-balance method of depreciation allocates an equal amount of annual depreciation through an asset's useful life and is the most common method used by many companies. O True O False