I. Write "T" if the statement is True and write "F" if otherwise1. Depreciation charges throughout the life of the asset should be recognized at inception at the present value.2. Receivables are classified as accounts, notes, or other.3. Financing charges added to a customer's credit card balance with a retailer are recorded as a debit to AccountsReceivable and a credit to Interest Revenue.4. Goodwill should be recorded as an asset and never adjusted.5. The allowance method for uncollectible accounts violates the expense recognition principle.6. An aging schedule shows a required balance in Allowance for Doubtful Accounts of $8,600. If there is a creditbalance in the allowance account of $2,000 prior to adjustment, the adjustment amount is $6,600.7. Useful lives of PPES should not exceed 25 years due to legal restrictions.8. The maturity date of a 60-day note dated December 1 is January 31.9. The interest due at maturity of a two-month, 8%, $800 note is computed by multiplying $800 X .08 X 2/12.10. Intangible assets with finite useful lives mostly differ from intangible assets with infinite useful lives with respectto accounting treatment of amortization.11. The maturity value of a $5,000 note is $5,300. If $180 of the interest has been accrued prior to maturity, theentry to record the honoring of the note at maturity should include a credit to Interest Revenue for $120.12. The principal amount of a 9%, 3-year, note receivable is $300,000 and is dated January 1, 2017. The interestrevenue to be recognized on December 31, 2017, is $9,000.13. All else equal, the depreciation method yielding the lowest operating profit on an equipment on the first yearof use is the double-declining balance method.14. Short-term receivables are reported in the statement of financial position immediately after cash.15. If the maker of a promissory note fails to pay the note on the due date, the note is said to be dishonored

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Description: I. Write "T" if the statement is True and write "F" if otherwise1. Depreciation charges throughout the life of the asset should be recognized at inception at the present value.2. Receivables are classified as accounts, notes, or other.3. Financing c

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I. Write "T" if the statement is True and write "F" if otherwise 1. Depreciation charges throughout the life of the asset should be recognized at inception at the present value. 2. Receivables are classified as accounts, notes, or other. 3. Financing charges added to a customer's credit card balance with a retailer are recorded as a debit to Accounts Receivable and a credit to Interest Revenue.

I. Write "T" if the statement is True and write "F" if otherwise 1. Depreciation charges throughout the life of the asset should be recognized at inception at the present value. 2. Receivables are classified as accounts, notes, or other. 3. Financing charges added to a customer's credit card balance with a retailer are recorded as a debit to Accounts Receivable and a credit to Interest Revenue.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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