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