4 . The acquisition of treasury stock by a corporation increases total assets and total stockholders ’ equity . False
5 . Treasury stock is reported as an asset on the balance sheet because treasury stock may later be resold . False
6 . Horizontal analysis is a technique for evaluating a financial statement item in the current year with other items in the current year . False
7 . Another name for horizontal analysis is trend analysis . True
8 . If a company has sales of $ 110 in 2007 and $ 154 in 2006 , the percentage decrease in sales from 2006 to 2007 is 140 %. False
9 . Allowance for Doubtful Accounts is debited under the direct writeoff method when an account is determined to be uncollectible . False
10 . When the allowance method is used , the write-off of an account receivable results in an expense at the time of write-off . False
11 . Allowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on the balance sheet . True