1. The purchase of Equipment with cash results in:

Select one:

a. Total Assets Increased Total Liabilities Increased

b.Total Assets Decreased Total Liabilities Decreased

c.Total Assets Unchanged Total Liabilities Unchanged

d.Total Assets Decreased Total Liabilities Increased

2. Assuming that the indirect method is used, which of the following would be deducted from net income to arrive at net cash flows from operating activities?

Select one:

a. Increase in prepaid expenses

b. Depreciation Expense

c. Loss on Disposal of Equipment

d. Increase in Unearned Revenue