1. Depreciation Expense is an estimate of an asset's useful life. Will it make sense to estimate this? Why or why not? If not, what could be a better option as to how to record an asset's usage in the financial statement? Keep detailed track of the asset's usage and reduce the asset's value exactly as it is used. Other? Also, is it helpful for financial statement users to see both the historical cost and the book value of an asset? Why or why not? Will it be more beneficial to simply show the book value? Why or why not? 2. Is the term debit mean increase and the term credit mean decrease? Explain. 3. What requirement is imposed by the double-entry system in the recording of any business transaction? 4. Explain the effect of operating profi tably on the balance sheet of a business entity. 5. Is net income represent a supply of cash that could be distributed to stockholders in the form of dividends? Explain. 6. What is the meaning of the term revenue? Is the receipt of cash by a business indicates that revenue has been earned? Explain. 7. What is the meaning of the term expenses? Is payment of cash by a business indicates that an expense has been incurred? Explain. 8. When do accountants consider revenue to be realized? What basic question about recording revenue in accounting records is answered by the realization principle? 9. Is managing earnings in this way a smart choice for a CEO or CFO? Why or why not?