1. Which of the following is an example of a current liability? a) Long-term loan payable b) Accounts receivable c) Accrued salaries payable d) Land held for investment 2. The matching principle in accounting requires that expenses be recorded: a) When they are paid in cash b) When they are incurred and revenue is recognized c) At the end of the accounting period d) Only if they are significant in amount 3. Which of the following is a characteristic of an asset? a) Decreases the owner's equity b) Represents a future obligation of the company c) Provides a benefit to the company in the future d) Has a credit balance in the accounting equation 4. What is the purpose of the statement of cash flows? a) To report the financial position of a company at a specific point in time b) To provide information about the company's revenues, expenses, and net income c) To show the changes in the company's cash balance over a period of time d) To disclose the company's investments in other companies