1. Which of the following statements concerning the income statement is true? A.lt measures performance over a specific period of time. OB.It determines after-tax income of the firm. C.It includes deferred taxes. D.lt treats interest as an expense. O E. All of the above. 2. The GAAP statement of cash flows is composed of which three main components: A.operating activities, expensing activities and dividend activities. B.expensing activities, investing activities and dividend activities. C.expensing activities, operating activities and financing activities. D.operating activities, investing activities and expensing activities. 3. Which equality is the basis for the balance sheet? A.Fixed Assets = Stockholder's Equity + Current Assets B.Assets = Liabilities + Stockholder's Equity C.Assets Current Long-Term Debt + Retained Earnings D.Fixed Assets = Liabilities Stockholder's Equity E.None of the above. 4. Accounting liquidity is defined as A.the amount of cash the firm has. B.the turnover ratio. OC.the ability of the assets to generate income. D.the ease and quickness with which assets can be converted to cash. E.None of the above. 5. A is an intangible asset A.building B.piece of machinery C.trademark D.piece of equipment E.computer 6. According generally accepted accounting principles (GAAP), revenue is recognized as income when A.a contract is signed to perform a service or deliver a good. B.the transaction is complete and the goods or services are delivered C.payment is requested. D.income taxes are paid. E.All of the above