| 1. | An annual estimated costs of assets uses up every year are included |
| a. | depreciation and amortization |
| b. | net sales |
| c. | net profit |
| d. | net income |
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Answer: (a).depreciation and amortization
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| 2. | The proceeds of the company shares of sold stock is recorded in |
| a. | preferred stock account |
| b. | common stock account |
| c. | due stock account |
| d. | preceded stock account |
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Answer: (b).common stock account
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| 3. | The statement of cash flows are included |
| a. | operating activities |
| b. | investing activities |
| c. | financing activities |
| d. | all of above |
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Answer: (d).all of above
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| 4. | A company purchases goods but does not pay payments to the suppliers immediately and record them as |
| a. | account payable |
| b. | account receivable |
| c. | current liabilities |
| d. | accumulated liabilities |
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Answer: (a).account payable
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| 5. | In calculation of net cash flow, the depreciation and amortization are treated as |
| a. | current liabilities |
| b. | income expenses |
| c. | non-cash revenues |
| d. | non-cash charges |
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Answer: (d).non-cash charges
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