Accounting 2 Semester 1 Review| 53 questions| withCORRECT solutions

true correct answer: the book value of a plant asset is its original cost minus accumulated depreciation false correct answer: for a business using the periodic inventory method the balance of merchandise inventory in the unadjusted trial balance represents the beginning balance plus all purchases of mrechandise made in the fiscal period false correct answer: the tax rate associated with an income tax bracket is the effective tax rate true correct answer: a business can use any 12 month period for reporting its financial performance false correct answer: cash and other assets expected to be exchanged for cash or consumed within a year are called liquid assets false correct answer: depreciation expense is recorded on all plant assets false correct answer: the internal revenue service sets the amounts and rates of the tax brackets used to calculate federal income tax expense true correct answer: management uses gross profit as a measure of how effectively the business performs in its primary functions of buying and selling merchandise false correct answer: data needed to prepare the liabilities section of a balance sheet are obtained