Reference no: EM132533184
True or False
Question 1. Merchandise inventory represents goods on hand purchased for resale by retailer or trading company
Question 2. The perceptual inventory system requires a continuous record of all receipts and withdrawals of each item of inventory
Question 3. Contingencies are probable future scarifies of economic benefits arising from present obligations of a particular entity to transfer assets
Question 4. Trade accounts payable resulted from sell of goods and services on account
Question 5. When a promissory note bears no interest or an unreasonably low rate of interest, the present value of the note payable is less than its face amount
Question 6. When Board of directors declares a cash dividend , the corporation incurs a legal obligations to pay the dividend on a specified date
Question 7. Contingencies is uncertainty as to possible gain/gain contingency /loss contingency / to a business enterprise that ultimately will be resolved when a future events occurs
Question 8. The total cost of plant asset is the cash paid only made to acquire the asset and place it in operating condition
Question 9. Land is depreciable asset
Question 10. Cash discount is payment for plant asset