T/F

A change in estimate of an asset's residual value involves restating the income statements of past periods for the estimate change. True False

False

Both stock and bond investments have maturity dates. True False

False

If a company accepts a major credit card such as VISA from a customer, then the company is responsible for the amount of the sale in case of nonpayment from a cardholder. True False

False

Interest is never a part of the cost of property, plant, and equipment or intangible assets. True False

False

Lewisburg Corp. had sales during the year of $15,000,000 and an average accounts receivable of $5,000,000. Its accounts receivable turnover ratio is 0.33 times. True False

False

One of the problems with the use of the allowance method to account for bad debts is that it often violates the matching principle. True False

False

Research and development costs should be presented as intangible assets. True False

False

The accounts receivable turnover ratio is computed by dividing net income by average accounts receivable. True False

False

The reason the allowance method of recognizing bad debts is used is primarily because it recognizes the maximum amount of write-off in each period. True False

False

A subsidiary is a separate legal entity that is owned or controlled by another entity. True False

True

When land and building are acquired for a lump sum, the purchase amount should be allocated on the basis of the market values of the two assets. True False

True