1. Current liabilities are defined as liabilities with a maturity of less than one year. TRUE Accessibility: Keyboard Navigation Difficulty: 1 Easy Gradable: automatic 2. A decline in the Net fixed assets account between year-end 2016 and year-end 2017 is a clear indication that fixed assets were sold during 2017. FALSE Accessibility: Keyboard Navigation Difficulty: 2 Medium Gradable: automatic 3. When reporting financial performance for tax purposes, U.S. companies prefer to use accelerated depreciation methods over the straight-line method. TRUE Accessibility: Keyboard Navigation Difficulty: 2 Medium Gradable: automatic 4. Accounting rules require U.S. companies to depreciate research and development (R&D) expenditures using the straight-line method. FALSE Accessibility: Keyboard Navigation Difficulty: 1 Easy Gradable: automatic 5. You can construct a sources and uses statement for 2017 if you have a company’s year-end balance sheets for 2017 and 2018. FALSE Accessibility: Keyboard Navigation Difficulty: 1 Easy Gradable: automatic 6. A reduction in long-term debt is a use of cash.