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TRUE OR FALSE

$1.$ Fixed assets are long term $($one year or greater life expectancy$)$ tangible property used in the production of income.

$2.$ Tangible fixed assets are typically recorded as a period expense when purchased.

$3.$ Depreciation is recorded as a debit to Depreciation Expense and a credit to Accumulated Depreciation.

$4.$ Accumulated Depreciation is a contra$-$asset account.

$5.$ In a sole proprietorship, an Owners Investment account and an Owners Withdrawal account replaces the Common Stock account and the Dividends account.

$6.$ The purchase of stocks and bonds of another corporation are considered a Financing activity.

$7.$ Select the "Check" function in QBO to record the purchase of a long$-$term investment.

$8.$ Select the "Bank Deposit" function in QBO to record the sale of Common Stock.

$9.$ The "Date of Declaration" and the "Date of Record" are the only two dates of importance associated with a cash dividend.

$10.$ In a Sole Proprietorship, there is no Common Stock or Dividends account.

$11.$ Select the "Bank Deposit" function in QBO to record the borrowing of funds on a long term basis. Funds borrowed on a long term basis is know as Long$-$Term Debt.

$12.$ The sale of a corporations own common stock, and the acquisition of long$-$term debt are considered examples of Financing activities.

$13.$ In QBO, if a company acquires a fixed asset by issuing long$-$term debt., the transaction is recorded using the journal entry process since no funds are exchanged.

$14.$ In QBO, use the "Bank Deposit" function to record the payment of cash dividends.

$15.$ Upon completion of Module $6/$Chapter $6$ Case $3$ steps $1-9,$ you will submit the "General Journal" for Case $3$ with a Report Period selection of $1/12/2026$ through $1/17/2026.$

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