For questions 3 through 8, indicate whether the statement is true or false. 2. Both accounts receivable and notes receivable represent claims that are expected to be collected in cash. Is this statement true or false? a. True b. False 3. Under the straight-line method, the amount of depreciation expense for the first full year of use of a fixed asset costing $95,000, with an estimated residual value of $5,000, and a useful life of 5 years, will be $18,000 (that is 12 x $1,500). a. True b. False 4. The double-declining-balance method of depreciation is also referred to as an accelerated depreciation method. a. True b. False 5. Intangible assets do not exist physically. a. True b. False 6. Goodwill refers to the excess of purchase price of a business over the fair value of its net assets. a. True b. False 7. Which of the following statements is true? a. The revenue activities of a service business involve providing services to customers. b. The revenue activities of a retail business involve the building of a product. c. The revenue activities of a service business involve the building of a product. d. The revenue activities of a retail business involve providing services to customers. 8. Employee fraud is the intentional act of deceiving an employer for personal gain. a. True b. False Indicate the answer choice that best completes the statement or answers the