1. The acquisition costs include all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.

Indicate whether the following items would be included in the cost of land

a. purchase price

b. depreciation

c. attorney fees

d. mowing and raking of the lawn

e. cost of a party for the neighboring businesses

2. One of the acceptable methods for estimating bad debt expense is the "aging of accounts receivable'

a. briefly explain how to calculate the aging of accounts receivable method

b. what management information is better understood using the aging of accounts receivable method that is not as easily understood by the percentage of sales method or the percentage of accounts receivable method?

3. Internal control principles common to most, if not all, companies include:

a. establishing responsibilities only over assets (true/false)

b. apply technology controls as appropriate (true/false)

c. insure assets (true/false)

d. rely on the company's independent auditors (true/false)

e. perform control reviews only after problems (true/false)