Companies are required to recognize warranty expense in the period the goods are returned for repairs.
Indicate whether the statement is true or false
(
Q. 2) Amortization is the ________.
A) allocation of a natural resource's cost to an expense account as the resource is consumed
B) allocation of an intangible asset's cost to an expense account over the asset's estimated useful life
C) allocation of building and equipment cost to an expense account over the assets' estimated useful lives
D) capitalization of a long-term asset's cost
(
Q. 3) A(n) _____________________________
_ indemnifies a company in case it suffers losses from defalcations committed by its employees.
Fill in the blank(s) with correct word
(
Q. 4) The purchase of treasury stock ________.
A) requires recognition on the income statement of any gain made on the purchase
B) requires recognition on the income statement of any loss incurred on the purchase
C) does not require recognition on the income statement of any gain made on the purchase
D) always decreases net income
(
Q. 5) Sales Tax Payable is a liability account.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) Why are credit card sales important to businesses?
What will be an ideal response?
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