True / False Questions 1. Current liabilities are defined as liabilities with a maturity of less than a year. True False 2. A decline in the Net fixed assets account between year-end 2013 and year-end 2014 is a clear indication that fixed assets were sold during 2014. True False 3. When reporting financial performance for tax purposes, U.S. companies prefer to use accelerated depreciation methods over the straight-line method. True False 4. Accounting rules require U.S. companies to depreciate research and development (R&D) expenditures using the straight-line method. True False 5. You can construct a sources and uses statement for 2014 if you have a company's year-end balance sheets for 2014 and 2015. True False 6. A reduction in long-term debt is a use of cash.