answer true or false for the phrases below.

( This is all one question ! )

* The current ratio measures the ability of current assets to pay current liabilities.

* Book value refers to the market value of a long-term asset.

*Depreciation refers to the periodic allocation of the cost of a tangible long-lived asset over its estimated useful life.

* Depreciation for tax purposes is identical to depreciation for financial reporting purposes.

* Gain on Sale of Machinery is recorded as a debit.

*Corporate earnings are subject to double taxation.

*The number of authorized shares should always equal or exceed the number of outstanding shares.

*Treasury stock is reported as an asset on the balance sheet because treasury shares may be sold later.

*Detailed information about a company's investments is appropriately disclosed in the notes to the financial statements.

*When the effective interest method is used to compute the interest and amortization of a bond discount, a varying interest rate is applied to the carrying value of the bonds at the beginning of each interest period.