1. If the depreciable cost of an asset is 16,000 and it has a useful life of 8 years, what is the annual depreciation expense? a. $2,500 b. $4,000 c. $2,000 d. $1,000 2. The current ratio is computed as: a. Total assets divided by total liabilities. b. Total assets divided by current liabilities. c. Current Assets minus current liabilities d. Current Assets divided by current liabilities 3. Muscat Corporation issued a 20-year mortgage note payable on January 1, 2010. At Dec. 31, 2010, the unpaid principal balance will be reported as: a. a current liability. b. a long-term liability. c. part current and part long-term liability. d. interest payable. 4. The Statement of cash flow classifies cash receipts and cash payments by the activities. a. operating and non-operating. b. investing, financing, and operating. c. financing, operating, and non-operating. d. investing, financing, and non-operating 5. Which of the following is not a depreciable asset? a. Machinery. b. Vehicles c. Land. d. Building.