answer true or false

1- In a broad sense, the cost of a machine or a building may be viewed as a long-term prepaid expense.

2-An auto owned by a glass manufacturer would be reported under Plant and Equipment, while glass owned by an auto manufacturer would be classified as Inventory.

3-The cost of land should not include any transaction costs, such as real estate commissions paid

4-CApital expenditures are those disbursements which are allocated to several accounting periods; revenue: expenditures are charged off as current expenses.

5-The cost of a plant asset should include all costs necessary to get the asset ready for use, including the cost of the units spoiled in production while the asset was being adjusted and tested

6-A small expenditure, such as $10 for a set of spark: plugs, may reasonably be charged to expense even though the expenditure may benefit several periods

7-Obsolescence may be a more significant factor than wear and tear through use in putting an end to the usefulness of many depreciable assets

8- Depreciation expense for a period should be a reasonably good estimate of the change in the fair market value of an asset during the period.

9-In practice, the residual value of an asset is often ignored in estimating annual depreciation expense.

10-The Accumulated Depreciation account is a fund established for the replacement of assets, but it will not be large enough to cover the cost of replacement during a period of inflation.

11-The fixed percentage-of-declining-balance method of depreciation has a "built-in" residual value and can never allocate 100% of the original cost of an asset to expense.

12-Generally accepted accounting principles require a business to use the same depreciation methods in its financial statements that it uses for income tax purposes.