3) . Since a perpetual inventory system continuously updates the inventory account, a physical inventory count is not necessary to prove the inventory records. 4) When applying the lower-of-cost-of-market role to inventory valuation in the United States, market value generally refers to the selling price of the inventory." 5) Expenditures that extend a plant asset's useful life should be capitalized. Book value of a plant asset equals the cost of the asset less the current year's depreciation expense. 7) The balance of the Unearned Revenue account becomes zero when a company has earned all of the revenue it had collected in advance. 8) Interest expense on a note payable is only recorded at maturity