Indicate the best choice (True or False) on the Excel template:

1	Unearned revenues are revenues that have been received in cash and recorded as liabilities before services have been performed
2	The first journal entry to establish a petty cash fund would be to debit Cash and credit Petty Cash
3	Using a bank account makes internal control over cash much stronger because the bank statement provides an independent record of activity.
4	A note receivable is a formal instrument of credit issued as proof of a debt between a debtor and the company.
5	Depreciation reflects the decline in value of an asset
6	The units-of-production method results in the same depreciation expense regardless of whether the depreciable asset is purchased at the beginning of the year or part way through the year.
7	The cost of land might include closing costs, such as survey and legal fees, and costs to prepare the land for its intended use
8	While the cost of land is recorded as a long-lived asset, the cost of paving a parking lot can be expensed immediately
9	As interest is incurred on a short-term note payable, it is debited to Notes Payable
10	A journal entry is required to recognize the current portion of long-term debt
11	An estimated liability is a liability that is known to exist but who amount and timing are uncertain
12	HST makes the cost of goods more expensive to a merchant who will resell the goods to consumers
13	HST is a combined or harmonized sales tax consisting of GST and provincial sales tax
14	Furniture purchased for the office would include an entry for HST Recoverable
15	Net pay is determined by subtracting employee payroll deductions from gross pay.
16	Payroll deductions are considered liabilities by the employer