1a)

Expenses' are best described as:

	a.	the amount of interest or claim that the owners have in the business.
	b.	a decrease in resources resulting from the sale of goods or provision of services.
	c.	an increase in resources resulting from the sale of goods or the provision of services.
	d.	the future economic resources of a business entity.

b) Which of the following statements is correct with regards to the statement of cash flows?

	a.	Investing activities include purchases of current assets made by the owners of the company.
	b.	Financing activities include amounts borrowed from financial institutions.
	c.	Investing activities include the cash received from customers.
	d.	Financing activities include net cash from the sale and purchase of the company's assets.

c) Which of the following statements is not correct?

	a.	Equity represents the owners' claims on the assets after deducting all liabilities.
	b.	Expenses represent decreases in economic benefits.
	c.	Assets are resources controlled by the company.
	d.	Income decreases equity.