Question

Explain whether the following statements are facts:

1. Canberra is 320 kilometres from Sydney
2. Depreciation expense for Company X for 2008 was $1294000. (This is the amount reported on the income statement)
3. Smoking leads to lung cancer
4. Sales revenue for Telex Ltd for 2009 was $2800000 (this is the amount reported on the income statement)
5. Equipment (net of accumulated depreciation of $400000) for Mc Nair Ltd for 2008 was worth $1800000. (this is the amount reported on the statement of financial position)

Answer 1