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Question 3. 3. A firm using the perpetual inventory system will update inventory records continually. (Points : 1) True False Question 4. 4. The specific identification method of inventory valuation would be ideal for a paint manufacturer. (Points : 1) Question 5. 5. The Retail inventory method is only used by service firms. (Points : 1) 1. Once a useful life is established for an asset it cannot be changed. (Points : 1) Question 2. 2. Once a depreciation method is chosen for an asset that depreciation method cannot be changed. (Points : 1) True False
Question 3. 3. Straight-line depreciation is the most common depreciation method in use. (Points : 1) Question 4. 4. Double declining balance depreciation is used only when an asset is expected to decline in value rapidly due to changes in technology. (Points : 1) Question 5. 5. Payment for repairs to a newly purchased piece of equipment that was damaged during shipment can also be capitalized as a necessary cost of getting the machinery functional. (Points : 1)