True or False

1______When an asset is purchased at a time other than the beginning of an accounting period, depreciation is recorded for the whole year and then no depreciation in the year of disposal is taken

2-------- Useful life or service life might not be as long as the assets total productive life.

3-------- Units-of-production depreciation charges a varying amount to expense for each period of an assets useful life depending on its usage.

4-------- Accelerated depreciation method yields less depreciation expenses in the early years of an assets life and more depreciation in later years.

5-------- Capital expenditures are additional costs of plant assets that provide benefits extending beyond the current period, thus are added to the book value of the asset.

6------- Payroll deductions, commonly called withholdings, are amounts withheld from an employees gross pay by law but not voluntary.

7------ A total of 15.3% is submitted by employers to social security and Medicare for each employee as deduction from their pay check.

8-------- A warranty is a sellers obligation to replace or correct a product (or service) that fails to perform as expected within a specified period, thus is recorded as a liability.

9------- FUTA requires employers to pay a federal unemployment tax on all salary or wages paid to each employee.

10------- Amounts received in advance from customers for future products or services are recorded as liabilities.