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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
Problem 4: A decrease in the value of Franchisee is referred as :
1- Amortization
2- Depreciation
3- Depletion
4- None of the above
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