Information lacking reliability may still have value
Indicate whether the statement is true or false
F
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To determine the source of a company's noncurrent assets, on which financial statement will you look?
a. Income statement only b. Balance sheet only c. Both the balance sheet and the income statement d. Both the income statement and the statement of retained earnings
Two determinants of the persuasiveness of evidence include which of the following?
a. Competence and Sufficiency. b. Relevance and Reliability. c. Appropriateness and Sufficiency. d. Independence and Effectiveness.
A specialized piece of equipment closely associated with a mine is most likely to be depreciated over a shorter than normal useful life because the
a. equipment will be fully utilized. b. income tax laws require that a shorter life be used. c. equipment contains certain defects. d. mine is expected to be fully depleted in the shorter length of time.
Newlog, which had developed a new process for making artificial logs, entered into an oral contract with Specialty Manufacturing. The contract provided that Specialty would manufacture a special part that Newlog needed to make its artificial log
machinery. The contract provided that Specialty would make the part to Newlog's specifications. Newlog orally agreed to pay $5,000 for the part. Specialty made the part to Newlog's specifications, but Newlog refused to pay, claiming that the oral contract was unenforceable because of the statute of frauds. Is Newlog correct?