Assume that the year 2000 is used as the index base period and that sales were 12 million in the year 2000. If sales were 18 million in the year 2006, the simple index number for the year 2006 is:

A company purchased a new truck at a cost of $42,000 on July 1, 2004. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. Which of the following will be included in the journal entry recorded on December 31, 2004?

A) Debit Depreciation Expense $3,500. B) Credit Accumulated Depreciation $3,250. C) Debit Depreciation Expense $4,000. D) Credit Accumulated Depreciation $6,500. E) Debit Depreciation Expense $7,000.

Financing activities on the statement of cash flows affect the long-term liability and equity accounts

Indicate whether the statement is true or false