HI, PLEASE ANSWER THE FOLLOWING: TRUE OR FALSE

Part 1 - True or False (20 pts.)

1. According to imprest petty cash fund, the petty cash account must be debited when it is replenished.

2. When an imprest petty cash fund of accounting is employed, entries include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made.

3. NSF customer check must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adjusted cash balance.

4. If the cash short or over account has a debit balance at the end of the period, it must be debited to an expense account.

5. Receivables from subsidiaries shall be classified as either current or noncurrent depending on the expectation of realizing them within one year or over one year.

6. The Allowance method of recording bad debts is consistent with accrual accounting.

7. Aging of accounts receivable is a method of estimating uncollectible accounts that emphasizes asset valuation rather than income measurement.

8. The advantage of relating bad debt experience to accounts receivable is that it gives a reasonably accurate measurement of receivables in the statement of financial position.

9. The salaries of sales staff cannot be included as cost of inventory.

10. The storage cost of part-finished goods should be taken into account when determining the cost of inventory.

11. Fixed production overhead should be included in inventory valuation.

12. The cost of designing product for specific customers is included in identifying the cost of inventory.

13. Professional fee arising directly from the acquisition of property, plant, and equipment should be expensed immediately.

14. The cost of testing the asset should be expensed immediately when incurred.

15. The cost of excess materials from a purchasing error should be capitalized as an asset.

16. The cost of preparing the site for machine installation will be treated as outright expense.

17. Interest bearing liabilities should be measured at face value.

18. Non-interest-bearing liabilities are measured at present value.

19. A liability should be classified as current if it is expected to be settled within the entity's normal operating cycle and it is expected to be settled within 12 months.

20. Trade accounts payable are measured at its fair value or invoice price, whichever is lower.