ACG FINAL EXAM 2024
Plant assets are used in operations and have useful lives that extend over more than one accounting period. - Answer--TRUE
Once an asset's book value equals its salvage value, depreciation stops - Answer--TRUE
Financial accounting and tax accounting require the same recordkeeping and there should be no difference in results between the two accounting systems. - Answer--FALSE
Total asset cost plus depreciation expense equals book value. - Answer--FALSE
Unearned revenues are current liabilities. - Answer--TRUE
Sales Taxes Payable is debited and Cash is credited when companies send sales taxes collected from customers to the government. - Answer--TRUE
The amount of FICA tax that employers must pay is twice the amount of the FICA taxes withheld from their employees. - Answer--FALSE
Accrued vacation benefits are a form of estimated liability for an employer. - Answer--TRUE
Stock is attractive to investors because stockholders are not liable for the corporation's actions and debts and because stock is easily transferred. - Answer--TRUE
Plant assets are used in operations and have useful lives that extend over more than one accounting period. - Answer--TRUE
Once an asset's book value equals its salvage value, depreciation stops - Answer--TRUE
Financial accounting and tax accounting require the same recordkeeping and there should be no difference in results between the two accounting systems. - Answer--FALSE
Total asset cost plus depreciation expense equals book value. - Answer--FALSE
Unearned revenues are current liabilities. - Answer--TRUE
Sales Taxes Payable is debited and Cash is credited when companies send sales taxes collected from customers to the government. - Answer--TRUE
The amount of FICA tax that employers must pay is twice the amount of the FICA taxes withheld from their employees. - Answer--FALSE
Accrued vacation benefits are a form of estimated liability for an employer. - Answer--TRUE
Stock is attractive to investors because stockholders are not liable for the corporation's actions and debts and because stock is easily transferred. - Answer--TRUE
