True or False 1 At the end of each accounting period trading

True or False

1) At the end of each accounting period, trading debt securities must be adjusted and reported at fair value.

2) Depreciation means that the business sets aside case to replace an asset when it is used up.

3) Each recievable transaction involves two parites - the one who takes on the obligation and the one who will collect the cash.

4) Controlling interest equity investments are debt securities in which the investor owns more than 50% of the investee\'s voting stock.

5) If a customer makes payment on a recievable that has already been written off, the receivable account is reestablished.

6) All cash deposits should be deposited in the bank at the end of each week.

Thank you for the help.

Solution

1) At the end of each accounting period, trading debt securities must be adjusted and reported at fair value.

Answer : TRUE

2) Depreciation means that the business sets aside cash to replace an asset when it is used up.

Answer : TRUE

3)Each recievable transaction involves two parites - the one who takes on the obligation and the one who will collect the cash.

Answer : False

(as each receivable transaction involves 2 parties : the creditor , who gets a receivable [ goods ] and the debtor who takes on an obligation / payable [ a liability ]. )

4)Controlling interest equity investments are debt securities in which the investor owns more than 50% of the investee\'s voting stock.

Answer : False

(as Controlling interest equity investments are equity securities in which the investor owns 50% or more of the investee\'s voting stock. )

5) If a customer makes payment on a recievable that has already been written off, the receivable account is reestablished.

Answer : TRUE

(As in simplest terms, reverse what you did)

6)All cash deposits should be deposited in the bank at the end of each week.

Answer : False

( It should be deposited on regulat interval for  bank reconciliation , but not necessary on end of each week)