1 ______ Accounts receivable is classified as a tangible fixed asset

2) ______ Accounts receivable is a current asset

3. _____ Amount due from a customer that is past due is a current liability

4_________ Accounts Receivable is one of the accounts that is the most liquid

5__________ Any asset that can be sold is considered liquid.

6. ________ As the degree of financial leverage increases, the probability a firm will encounter financial distress increases

7.___________ The book value of a firm is equivalent to the firm's market value provided that the firm has some fixed assets

8._______________The Income Statement is the financial statement that shows the accounting value of a firm's equity as of a particular date

9.______________ The statement of Cash Flows is the financial statement that summarizes a firm's revenue and expenses over a period of time

10._______________ Interest expense is an expense for accounting purposes but is not an operating cash flow for financial purposes

11___________ Office salaries is most apt to be a fixed cost

12_____________ Depreciation for a tax-paying firm increases expenses and lowers taxes

13_____________ An example of a capital budgeting decision is deciding ) how many shares of stock to issue

14.____________ Depositing cash receipts should be the responsibility of the controller rather than the treasurer

15. ____________ The controller reports to the chief financial officer correctly defines the upward chain of command in a typical corporate organizational structure

16____________ The treasurer of a corporation generally reports directly to the

board of directors

17____________ Whether or not a company update or replace its older equipment is a capital Management decision

18____________ a limited Partner is a business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership

19__________ A corporation is a business created as a distinct legal entity and treated as a legal "person

20 ___________ A sole proprietorship is structured the same as a limited liability company.