Reference no: EM132906768

Problem 1: If technology is changing rapidly, a firm should:

A- expense plant assets immediately because of the uncertainty of future benefits.

B- depreciate plant assets over long periods of time.

C- consider an accelerated rate of depreciation

D- use the straight-line method of depreciation as it is the easiest.

Problem 2: The first step in the liquidation of a the partnership is to sell non-cash assets and recognize a gain or loss on realization

A- True

B- False

Problem 3: The major advantages resulting from the use of bonds are that interest must be paid and principal repaid

A-True

B- False

Problem 4: A decrease in the value of Franchisee is referred as :

1- Amortization

2- Depreciation

3- Depletion

4- None of the above