1 False When an asset is purchased at a timeother than the beginning of an accounting period, depreciation isrecorded for the whole year and then no depreciation in the year ofdisposal is taken
2-------- Useful life or service life might not be as long asthe asset’s total productive life.
3-------- Units-of-production depreciation charges a varyingamount to expense for each period of an asset’s useful lifedepending on its usage.
4-------- Accelerated depreciation method yields lessdepreciation expenses in the early years of an asset’s life andmore depreciation in later years.
5-------- Capital expenditures are additional costs of plantassets that provide benefits extending beyond the current period,thus are added to the book value of the asset.
6------- Payroll deductions, commonly called withholdings, areamounts withheld from an employee’s gross pay by law but notvoluntary.
7------ A total of 15.3% is submitted by employers to socialsecurity and Medicare for each employee as deduction from their paycheck.
8-------- A warranty is a seller’s obligation to replace orcorrect a product (or service) that fails to perform as expectedwithin a specified period, thus is recorded as a liability.
9------- FUTA requires employers to pay a federal unemploymenttax on all salary or wages paid to each employee.
10------- Amounts received in advance from customers for futureproducts or services are recorded as liabilities.
