1. In the CP system, the purchase order is the source document for all of the company's expenses recorded in its accounting system. True False 2. On a balance sheet, assets are: obligations the company owes. items of value the company owns. equal to liabilities. common or preferred stock. 3. Which of the following is not an advantage of the CP system? teamwork payroll control alignment of interests additional paperwork As you increase the discount rate in calculating the present value of a potential investment, the present value of the potential investment: increases. decreases. stays the same. fluctuates. 5. When calculating MIRR all negative cash flows are discounted to the present at year zero and all positive cash flows are grown into the future at the WACC rate. True False 6. NPV and IRR calculations always provide the same accept or reject decisions, True False 7. Cash includes: checks, money orders, and accounts payables. checks, money orders, and marketable securities. checks, stocks, and accounts receivables. checks, accrued taxes, and payroll