Intangible assets are subject to a process called depreciation.

Question 12 options:

	1) True
	2) False

The cost of land would include the cost of a building purchased with the land and torn down because it was not needed.

Question 13 options:

	1) True
	2) False

Residual value is not relevant when calculating double-declining-balance depreciation.

Question 14 options:

	1) True
	2) False

Natural resources are classified as intangible assets on the balance sheet.

Question 15 options:

	1) True
	2) False

Deplete natural resources, amortize equipment and depreciate patents.

Question 16 options:

	1) True
	2) False

Because failure to record a liability generally leads to failure to record an expense, it usually results in an overstatement of income.

Question 24 options:

	1) True
	2) False

If any portion of a long-term debt is to be paid in the next year, the entire debt should be classified as a current liability.

Question 25 options:

	1) True
	2) False

The federal and state unemployment tax rates are identical.

Question 26 options:

	1) True
	2) False

If the amount of a liability cannot be exactly determined, it should not be recorded anyway.

Question 27 options:

	1) True
	2) False

Accounting True and False Questions

Discount on Notes Payable is associated with promissory notes where the interest is deducted from the proceeds of the loan at the very beginning.

Question 28 options:

	1) True
	2) False