1. Which of the following statements best describes revenue recognition in the income statement? Your answer: a) Sales/revenues are recognized in the income statement when a contract is signed b) Sales/revenues are recognized at the time goods / services are delivered and title has passed. c) Sales/revenues are recognized in the income statement when a contract is signed d) Sales/revenues are recognized when the customer pays 2. The purpose of depreciations is to: Your answer: a) Balance the balance sheet b) Match the accounting or book value of an asset to the market value c) Help a company minimize its tax expense d) Spread the original cost of an asset over the period a company gets benefit from it 3. True or False, amortization reported on the cash flow statement may include amortization of financial items related to leases and bond discounts. Your answer: a) True b) False 4. True or False, EBIT is a US GAAP defined measure. Your answer: a) True b) False