- The current ratio is calculated by dividing current liabilities by current assets

1. TRUE

2. FALSE

- Straight-line depreciation produces a lower net income than accelerated depreciation methods in the earlier years of an asset's life.

1. TRUE

2. FALSE

- We record a long-term asset at its cost less all expenditures necessary to get the asset ready for use.

1. TRUE

2. FALSE

- Car loans and home loans that require monthly payments are sometimes referred to as installment notes.

1. TRUE

2. FALSE

- Deductions from employee salaries in determining the amount of payroll checks include withholdings for federal and state income taxes, FICA taxes, and the employee portion of insurance and retirement contributions.

1. TRUE

2. FALSE

- FICA taxes are paid only by the employee.

1. TRUE

2. FALSE

- Property, plant, and equipment are types of tangible assets.

1. TRUE

2. FALSE

- With each monthly payment of an installment note payable, the portion assigned to interest expense increases.

1. TRUE

2. FALSE