1. Cash equivalents: A. B. C. D. E. Include 6-month certificates of deposit. Are short-term, highly liquid investment assets. Are recorded in petty cash. Include money orders. Include checking accounts. 2. Depreciation: A. Is the process of allocating the cost of a plant asset to expense Is an outflow of cash from the use of a plant asset. Measures the decline in market value of an asset. Is applied to land. Measures physical deterioration of an asset. B. C. D. E. Ordinary repairs meet all of the following criteria except: A. Include cleaning, lubricating, and normal adjusting. B. Are necessary if an asset is to perform to expectations over its usefu C. Are treated as expenses. D. Are expenditures to keep an asset in normal operating condition. E. Extend the useful life of an asset beyond its original estimate The itemized statement of goods prepared by a vendor listing the custo sales prices, and terms of the sale is called the A. Invoice B. Purchase order. C. Invoice approval. D. Receiving report E. Purchase requisition. Test 3, V2