Which of the following statements is true?

Published financial statements are prepared according to the cash basis of accounting

Students

Published financial statements are prepared according to the accrual basis of accounting.

Published financial statements must be prepared according to both the accrual and cash basis.

Published financial statements may be prepared according to either the accrual or cash basis of accounting

What do the choices and estimates relating to depreciation affect?

Net fixed assets on the statement of financial position and depreciation expense on the income statement

Only net fixed assets on the statement of financial position.

Gross fixed assets on the statement of financial position and depreciation expense on the income statement

Accumulated depreciation on the income statement and depreciation expense on the statement of financial position.

What type of accounts are notes payable and current maturities of long-term debt?

Investing accounts.

Operating accounts

Financing accounts.

Cash accounts

Why could depreciation expense be considered a discretionary item?

A salvage value must be estimated.

Management must select a method of depreciation,

Management must estimate the useful life of the asset.

All of the above.