The cost of a building less its accumulated depreciation represents the undepreciated cost
a. True
b. False
Indicate whether the statement is true or false
True
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Reversing entries simplify the recording of transactions in the next period
Indicate whether the statement is true or false
The Clorox Company marketed a new product called Clorox Oxygen Action multipurpose stain reliever. This is an example of a brand extension
Indicate whether the statement is true or false
Kurtain Corp leased a new building and land from Harlow Leasing Inc for 20 years. At the inception of the lease the building and land have fair market values of $150,000 and $20,000, respectively. The building has an expected economic life of 25 years. Which of the following statements is correct regarding Kurtain's treatment of the lease?
a. Kurtain should treat the lease as a capital lease provided that the land and building are recorded in separate asset accounts and accounted for separately. b. Kurtain should treat the lease as a capital lease only if there is either a bargain purchase option or an automatic transfer of ownership at the termination of the lease. c. Kurtain should treat the lease as a capital lease even though there is no bargain purchase option and no automatic transfer of ownership at the termination of the lease. d. Kurtain should treat the lease as a capital lease only if Harlow treats the transaction as a leveraged lease.
Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This discharges the entire debt
A. if the debt is liquidated. B. if the debt is past due. C. if the debt is unliquidated. D. under no circumstances.