a.

The formula for calculating interest on a note is:

Principal of the note Annual interest rate Interest (stated in fractions of a year).

True

False

b.

You will find accumulated depreciation reported on the Statement of Owners Equity.

True

False

c.

Analyzing accounts receivable to determine the amount of uncollectible accounts is known as the:

		Direct write-off method
		Aging of accounts receivable method
		Percentage of sales method
		Percent of accounts receivable method

d.

The formula for calculating straight-line depreciation is

	A.	initial cost / estimated useful life
	B.	depreciable cost / estimated useful life
	C.	depreciable cost * estimated useful life
	D.	initial cost * estimated useful life