Section #ACC 2101 Date 1. In order to be relevant, accounting information must a. be neutral. b. be verifiable. help predict future events. d. be a faithful representation. 2. Riodan Company sold old equipment for $25,000. The equipment had a cost of $50,000 and accumulated depreciation of $30,000. The entry to record the sale of the equipment would include a a. loss on disposal of $25,000 b. gain on disposal of $25,000 c. loss on disposal of $5,000 d. gain on disposal of $5,000 3. The cost of intangible assets should be a amortized over the assets' estimated useful life, or legal life, whichever is shorter. b. amortized over a period not exceeding 5 years. C. amortized over the assets' estimated useful life. d. charged to an expense account at acquisition. 4. In a period of rising prices, the inventory method that results in the lowest income tax payment is a LIFO b. FIFO. c. average cost. d. specific identification 5.On November 30, Thatcher Company issued a $8,000, 6%, 4-month note to the National Bank. The entry on Thatcher's books to record the payment of the note at maturity will include a credit to Cash for a $8,000. b. $8,480 C. $8,160. d. $8,320